Findings of a study published this month on JAMA Open Network, reveal the Centers for Medicare and Medicaid Services (CMS) overpaid Medicare Advantage (MA) plans by as much as $58 million for most beneficiaries following hospice election.

Authors of “Medicare Advantage Plan Spending and Payments Under the Hospice Carve Out” reviewed spending on more than 300,000 enrollees who elected hospice between 2017 and 2018 and found that MA plans received high premium and rebate payments for these beneficiaries despite low health care spending after enrollees elected hospice.

Researchers recommended policy reforms to reduce excess payments but noted policymakers should be mindful that reducing payments too much could have a chilling effect on hospice enrollment for MA beneficiaries.