Prognosis

Medicare Wants to Claw Back $4.7 Billion From Private Health Insurers

  • Companies don’t get leniency sought for diagnostic errors
  • Blow to Humana, UnitedHealth, other firms sets stage for suits

Two people inside a Medicare Services office in New York City. 

Photographer: Spencer Platt/Getty Images
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The US Medicare agency will seek about $4.7 billion over 10 years in clawback payments from private insurers that manage its programs under a long-awaited rule finalized Monday, a blow to the industry that sets up a likely court fight.

The rule, which governs audits of Medicare Advantage insurers by the Centers for Medicare and Medicaid Services, is tougher than the industry had lobbied for. It finalized a 2018 proposal for auditing the private plans that administer programs for the agency, a move intended to recover excessive payments based on exaggerated claims of patient illness.