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CMS criticized for offsetting Medicare Advantage plan cuts

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A report last week on Medicare Advantage plans criticized the Centers for Medicare & Medicaid Service (CMS) for improperly offsetting some cuts to the plans.

At issue is a provision in health care reform that was supposed to cut excessive Medicare Advantage payments by $68 billion by 2017, but the Government Accountability Office report noted that CMS has used a demonstration project to pay these plans $8.35 billion in bonuses to offset cuts.

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