I recall during the last Medicare open season, there was considerable discussion about Advantage plans which had cut or reduced rebates. A number of folks were upset that the reductions had happened.
The rebates had to come from somewhere. There are not fairy dollars paying for them. The shareholders of the companies involved are not such wonderful people that they gave up dividends to pay for them. The money came straight from the extra funds these plans receive from Medicare.That money was supposed to fund extra services which would help keep subscribers more healthy.
Why is Medicare demanding repayment of the rebates? Because that money was Medicare funds spent not for health care but to "buy" your cooperation in their plan. Unfortunately, they spent the money that should have gone to doctors and which Medicare is now on the hook for.
The alternative is that the taxpayers would be on the hook. Medicare is doing the right thing here, just as they do the right thing when they go after doctors and hospitals for over-payments.
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