Medicare Demo Program Rewards Mediocrity, GAO Finds

Law360, New York (April 23, 2012, 3:49 PM EDT) -- The U.S. Government Accountability Office said Monday that a potentially $8.3 billion test program for Medicare Advantage would mostly reward mediocre performers, and urged the U.S. Centers for Medicare and Medicaid Services to abolish the experiment.

The U.S. Government Accountability Office said over $5.3 billion of the estimated $8.3 billion the program would cost over the next 10 years — dwarfing the cost of all other Medicare demonstration programs conducted since 1995 — would be primarily used to pay bonuses to Medicare Advantage plans with only...
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