Medicare Firms Skim Obamacare Gravy

Medicare Firms Skim Obamacare Gravy
AP Photo/ Khalil Hamra

An Obamacare loophole allowed insurance companies to receive significant bonuses by shifting Medicare Advantage customers into higher-ranked plans. Medicare ranks privately managed plans on a five-star quality scale and provides financial bonuses to providers of top-ranked plans. Using a tactic known as crosswalking, insurers received millions of dollars in federal payments without providing any actual improvement in their performance on customer service, health screenings and other quality measures.

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