MedCity morning read, Wednesday, April 1 (no joke)

The Obama administration has started its promised crackdown on Medicare Advantage plans.

Under guidelines announced Monday by the Centers for Medicare and Medicaid Services (CMS), these plans — which are the private equivalent of government-run Medicare — will have greater reporting requirements, fee restrictions and could face more scrutiny from the federal government.

The plans that cover about 10 million Americans will have to cap out-of-pocket expenses for participants at $3,400 a year or face greater government scrutiny. The plans also will be looked at more closely if they require participants to pay more than the government does for therapies like kidney dialysis.

In addition, plans that charge sick, low-income participants more than the government does for services will face more government oversight.

The requirements come in play when insurance companies next bid for federal business under the Medicare Advantage program.

Pres. Barack Obama has criticized Medicare Advantage plans for spending too much while doing too little to take care of the sick and elderly, according to the Wall Street Journal (subscription required).

CMS also announced changes for Medicare prescription drug plans, which often are bundled with Medicare Advantage, according to the Associated Press.

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• Anthem told it can’t end contract early (Indianapolis Star Tribune)
• Ohio Business Roundtable releases health care reform recommendations (Ohio Health Policy Review)
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