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-Lurid Crime Tales-
Seniors Hit With Billions In Extra Premiums From Medicare Overpayments: Report
2026-03-11
[ZeroHedge] Private insurers are padding their pockets with billions in alleged overpayments from Medicare Advantage, and hardworking American seniors are footing the bill through higher Part B premiums, according to a congressional report obtained by the Wall Street Journal.

The report, issued by the bipartisan Joint Economic Committee, shows that controversial practices, such as adding extra diagnoses to trigger larger government reimbursements, drove up Medicare Part B premiums by $13.4 billion in 2025 alone.

That amounts to roughly 10% higher costs, or more than $200 extra annually, for the average senior on a fixed Social Security income. The impact extends beyond enrollees in Medicare Advantage plans. Traditional Medicare beneficiaries are also paying higher premiums to help subsidize the private plans' gains.

Rep. David Schweikert (R-AZ), who chairs the committee, said in a statement to the Journal, "Extra spending on Medicare Advantage is not just coming out of the federal government’s budget, a portion of this comes out of you.”

The Journal reports:

Medicare Advantage, which has long enjoyed support from Republicans, has faced growing bipartisan scrutiny. Among the biggest players in the business are UnitedHealth Group, Humana and Elevance Health.

Lawmakers and government investigators have been probing how insurers’ billing practices have contributed to Medicare Advantage costs. A congressional watchdog found Medicare Advantage costs the federal government more than traditional Medicare, partly because of insurers’ billing practices. The insurers are paid more to cover enrollees who have more health conditions, and they can boost their reimbursement by recording more diagnoses.

Medicare Part B, which covers doctor visits, lab tests, and outpatient services, had standard premiums around $185 per month in 2025, deducted directly from Social Security checks. Due to these alleged overpayments, however, everyone pays more for the same benefits.

Speaking to the Journal on Friday, Medicare agency administrator Mehmet Oz said that while he doesn’t believe Medicare Advantage insurers are as overpaid as has been reported, he did concede that, “we should change the rules.”
Related:
Medicare Advantage: 2025-02-05 Trump handed 'opportunity to save Medicare' after Biden admin's final blow to seniors: expert
Medicare Advantage: 2024-06-29 Another Trump achievement Biden claimed in last nights debate: insulin price drop
Medicare Advantage: 2024-05-07 Social Security trust fund to be exhausted by 2035 and Medicare in 2036, trustees project
Related:
Medicare Part B: 2009-10-29 The Unhealthy 'Public Option'
Medicare Part B: 2009-09-25 A $4 billion bailout for the Postal Service?
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