The federal government is wasting taxpayer dollars by pre-paying private Medicare Advantage insurers for care that is ultimately provided and paid for by the Veterans Health Administration. This practice has resulted in a waste of resources that could instead be used to offer more services to veterans or reduce national debt. More than 9 million veterans are enrolled in healthcare through the VHA, providing care at 1,400 hospitals and outpatient clinics designed for service members. The problem lies in the fact that VHA facilities do not bill Medicare Advantage insurers for care provided, resulting in taxpayers paying for care twice. Studies have shown that between 2011 and 2020, VHA spent $78 billion treating veterans enrolled in Medicare Advantage plans. The most sensible solution proposed is to require Medicare Advantage plans to reimburse VHA facilities directly for care provided to veterans. By closing this loophole, taxpayers would not have to pay twice for the same care. Anthony J. Principi, former Secretary of Veterans Affairs, highlights the need to address this issue to prevent further wastage of taxpayer dollars.
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