Contractor Fraud is Threatening Market Stability

Fraud, specifically schemes perpetuated by contractors and other third parties, is a threat to the stability of the insurance market.

Just last month, two arrests of contractors in Naples, FL for allegedly operating a solicitation scheme for free roof replacements due to Hurricane Irma damage.

They allegedly enticed homeowners with rebates to cover their insurance deductible if they submitted an insurance claim for a roof replacement.

·     • The company’s salespeople would require the homeowner to sign an Assignment of Benefits and an “advertising agreement,” which allowed the company to place an advertising sign in their yard, and the homeowners were required to provide positive reviews online and give neighborhood referrals.

Medicare accounted for 20 percent of US healthcare spending in 2020, report says

Andrew Cass - 2 days ago  Print  | Email

In 2020, Medicare spending comprised 12 percent of the federal budget and 20 percent of national healthcare spending overall, according to the Kaiser Family Foundation. 

Those figures are part of an interactive dataset released by the foundation April 26 examining Medicare costs.

Six things to know: 

1. Medicare benefits totaled $769 billion in 2020, up from $200 billion in 2000. That's an annual growth rate of 7.1 percent.

2. Over that same span, Medicare spending per person grew from $5,800 to $14,400. That's an annual growth rate of 4.6 percent. 

3. From 2000-2010, the average annual growth rate in spending per person was 7.4 percent for Medicare and 7 percent for private insurers. 

4. From 2010-2020, the average annual growth rate in spending per person was 1.9 percent for Medicare and 2.8 percent for private insurers. 

5. In 2030, 54 percent of Medicare spending will be for Medicare Advantage plans. In 2021, Medicare Advantage plans accounted for 46 percent of spending. 

6. Medicare enrollment is projected to grow from 63 million in 2020 to 93 million in 2060.

Medicare fraud can be a big business for criminals. Medicare loses approximately $60 billion annually due to fraud, errors, and abuse, though the exact figure is impossible to measure. Oct 20, 2021