“An investigation by the Wall Street Journal revealed that U.S. health insurers who manage Medicare’s Part D drug plans pocketed an extra $9.1B from 2006 – 2015 by overestimating their costs for the programs.”
“Under their agreements with U.S. Centers for Medicare and Medicaid Services (CMS), the companies submit bids estimating their costs for administering the plans for the upcoming year. Medicare bases its monthly payments to the insurers on these estimates. After the year ends, an insurer can keep a portion of the money it received from Medicare if…” Read the full post here.
Source: Health insurers keeping extra billions in Medicare Part D plans – WSJ – By Douglas House, January 4, 2019. Seeking Alpha.