Cutting health spending is hard

Sam Baker reports:

The Medicare agency had initially proposed a 2.2 percent cut in Medicare Advantage payments. But on Monday the agency said it had scrapped that cut and would instead offer a 3 percent payment increase next year. [Other reports say 3.3%.]

America’s Health Insurance Plans (AHIP), the industry’s top lobbying group, praised the reversal.

Is either price the right one? Theoretically, a competitive bidding regime would obviate this question.

@afrakt

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