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Senate report highlights Medicare Advantage’s impact on senior care

May 6, 2025 / 8 min read

A recent U.S. Senate report reveals how Medicare Advantage insurers’ prior authorization practices are denying seniors post-acute care, creating barriers to care and financial challenges for patients and senior care providers. Here’s what you need to know.

A recent report from the U.S. Senate Permanent Subcommittee on Investigations, “Refusal of Recovery: How Medicare Advantage Insurers Have Denied Patients Access to Post-Acute Care,” focuses on the issue of prior authorization in Medicare Advantage and the significant concern, especially for seniors recovering from serious health events. The recent inquiry by the Permanent Subcommittee on Investigations (PSI) highlights how this process can create barriers to necessary care, potentially jeopardizing the health and well-being of vulnerable individuals. Four key themes emerged in the inquiry.

Denials for post-acute care can force seniors into tough decisions about their health and finances, particularly right after hospital discharge when they are most vulnerable.

The findings from the subcommittee highlight a troubling trend in the Medicare Advantage system and the importance of advocating for policies that prioritize patient health over profit.

The significant increase in denial rates for post-acute care requests compared to other types of care indicates a systematic issue.

By addressing these issues, the healthcare experience for Medicare Advantage beneficiaries could significantly improve.

Chart showing initial adverse determination rates, overall and for post-acute care by insurer and by year.

UnitedHealthcare

The findings from the PSI regarding UnitedHealthcare’s use of automation and predictive technologies in the prior authorization process raise several important concerns.

The introduction of algorithms like nH Predict to determine optimal care placements raises ethical questions.

These findings highlight the need for greater oversight and reform in the prior authorization process, ensuring that it prioritizes patient health rather than operational efficiency. Advocating for transparency and accountability in these practices could help protect seniors’ access to essential care.

Chart showing UnitedHealthcare initial adverse determinations by skilled nursing facilities.

Chart depicting UnitedHealthcare initial determinations by home health care.

CVS

The PSI findings regarding CVS highlight stable denial rates amid an increase in service requests and streamlining of the authorization process.

The insights from CVS’ approach to prior authorizations and cost management in its Medicare Advantage division are quite revealing.

These developments illustrate the complex balance between cost management and patient care in healthcare systems.

Chart showing CVS enrollment and prior authorization requests in 2019 and 2022.

Humana

The information about Humana’s approach to prior authorization for long-term acute care hospitals also reveals several important trends and strategies.

Overall, Humana’s strategies reflect a balancing act between cost control and ensuring appropriate patient care.

Chart showcasing Humana initial adverse determinations, by year and by facility type.

Overall key concerns

The report highlights the apparent conflict between financial gain versus medical necessity in prior authorization decisions. The data suggests that insurers may be prioritizing financial considerations over clinical judgment, particularly in high-cost areas of care. This shift could undermine patient care and access to necessary services. The findings from the subcommittee’s investigation into Medicare Advantage insurers raise significant concerns about the intersection of financial incentives and medical necessity, and makes recommendations in three key areas.

  1. Data collection by CMS: The recommendation for CMS to collect prior authorization data categorized by service type is crucial. This would provide clearer insights into whether insurers are disproportionately targeting specific types of care, allowing for better oversight.
  2. Targeted audits: Conducting audits based on notable increases in denial rates would enable CMS to focus its resources more effectively. By identifying insurers with significant spikes in adverse determinations, CMS can address potential abuses in the prior authorization process.
  3. Regulation of predictive technologies: Expanding regulations for utilization management committees is essential to ensure that predictive technologies don’t unduly influence human reviewers. This is vital to maintain the integrity of clinical decision-making and prevent algorithmic bias from overshadowing professional judgment.

These recommendations aim to enhance transparency and accountability in the prior authorization process, ensuring that patient care remains the priority. The balance between cost management and quality care is delicate, and these steps could help safeguard against potential pitfalls.

Impact on senior care providers

The report highlights the challenges Medicare Advantage plans have created for beneficiaries as well as senior care providers. Specifically, the denial of authorization or reauthorization for services for beneficiaries has contributed to occupancy challenges and much shorter lengths of stay.

The denial of authorization or reauthorization for services for beneficiaries has contributed to occupancy challenges and much shorter lengths of stay.

An analysis of payments to providers as compared to the Medicare program wasn’t contained in this report; however, we typically see Medicare Advantage plans paying post-acute providers significantly later than traditional Medicare payments, resulting in negative margins for providers. We’re hopeful that the focus on Medicare Advantage plans will result in positive changes for beneficiaries and post-acute care providers.

To discuss how Medicare Advantage plans impact your organization’s financial stability, contact us.

Appendix highlighting the number of requests and denial rates by facility and insurers.

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