This blog has closely monitored Medcare Advantage with multiple posts including the strange policy of paying a payor like Humana and UHC more to administer medicare than it costs CMS to administer itself. Several pundits including many from Congress have suggested cutting medicare advantage reimbursement in order to fund increases to providers or for doing logical things like cutting the cap (or getting rid of that stupid exemption process thing).
So, what do we get? Instead of a cut, they are increasing their fees by 3.6%! Isn’t that more than the 1% that we got?
This of course sent Humana’s stock soaring yesterday.