MEDICARE: Incentives Needed to Assure Private Insurers Pay Before Medicare
Abstract
One way to help control rising Medicare costs is to be sure that the program does not pay medical bills that other insurers should cover. Several times since 1980, the Congress has amended the Medicare statute to designate certain insurers as the primary payer-that is, to require them to pay medical claims ahead of Medicare. Insurers become the primary payer if they provide medical coverage to Medicare beneficiaries under certain employer group insurance plans, workers' compensation, or automobile and other liability insurance. Medicare then acts as a secondary payer; its claims processing contractors, usually themselves insurance firms, pay only what Medicare is responsible for after the other insurance pays. An estimated 1.5 million Medicare beneficiaries (about 5 percent) have other such insurance.
Document Details
- Document Type
- Technical Report
- Publication Date
- Nov 01, 1988
- Accession Number
- ADA202063
Entities
Organizations
- United States Government Accountability Office