Bonuses paid to Medicare Advantage insurers will hit a record high in 2026, surpassing $13 billion, but the administration has proposed an overhaul of the system, while some policymakers say it should be disbanded.
Centers for Medicare and Medicaid Services evaluates Medicare Advantage insurers based on quality, outcomes, improvement, and patient experience.
The system, which awards up to five stars, is supposed to help consumers make informed choices on health plans while spurring providers to improve service.
Insurers who get four or more stars receive additional federal funds.
This year’s projected $13.4 billion in bonuses is four times the amount paid in 2015, according to a July 1 report from KFF, a healthcare research institution….