14 Cents On The Dollar

Austin Frakt, who has studied Medicare Advantage, supports the proposed cuts to the program:

[D]o higher MA payments produce little value to beneficiaries, as Obama claims, or are the benefits they fund important to maintain, as Republicans would have us believe? The balance of the evidence is on Obama’s side. In fact, it is a landslide: for each dollar spent, 14% of the value reaches beneficiaries and 86% of it goes elsewhere (profit or cost). Cuts to MA should be a no brainer.

(Hat tip: Ezra Klein)