STEPHEN MOORE: Hospitals and insurers are getting rich off medical fraud - Insurance News | InsuranceNewsNet

InsuranceNewsNet — Your Industry. One Source.™

Sign in
  • Subscribe
  • About
  • Advertise
  • Contact
Home Now reading Earnings
Topics
    • Advisor News
    • Annuity Index
    • Annuity News
    • Companies
    • Earnings
    • Fiduciary
    • From the Field: Expert Insights
    • Health/Employee Benefits
    • Insurance & Financial Fraud
    • INN Magazine
    • Insiders Only
    • Life Insurance News
    • Newswires
    • Property and Casualty
    • Regulation News
    • Sponsored Articles
    • Washington Wire
    • Videos
    • ———
    • About
    • Meet our Editorial Staff
    • Advertise
    • Contact
    • Newsletters
  • Exclusives
  • NewsWires
  • Magazine
  • Newsletters
Sign in or register to be an INNsider.
  • AdvisorNews
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Exclusives
  • INN Magazine
  • Insurtech
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Video
  • Washington Wire
  • Life Insurance
  • Annuities
  • Advisor
  • Health/Benefits
  • Property & Casualty
  • Insurtech
  • About
  • Advertise
  • Contact
  • Editorial Staff

Get Social

  • Facebook
  • X
  • LinkedIn
Earnings
Earnings RSS Get our newsletter
Order Prints
April 29, 2026 Earnings
Share
Share
Post
Email

STEPHEN MOORE: Hospitals and insurers are getting rich off medical fraud

STEPHEN MOOREThe Bakersfield Californian

Polls show Americans are angry — and rightly so — at accelerating medical bills. Meanwhile, the insurers and hospitals keep raking in record profits.

UnitedHealthcare just reported jumbo profits so far in 2026, and in 2025 they recorded revenues of more than $400 billion. They are raking in profits from the $1.9 trillion in federal health-care programs.

Two of the largest "nonprofit" hospital chains, Kaiser Permanente and HCA Healthcare, recorded nearly $200 billion in assets at the end 2024. As Rep. Jason Smith, chairman of the House Ways and Means Committee, put it: "Hospitals are charging an insane amount. Hospital prices have skyrocketed 300% in just over two decades — more than any other sector of our economy."

A major driver of costs is the fraudulent claims paid out by the government to health insurers and hospitals. Much of the scam billings are charged to the half-trillion-dollar Medicare Advantage program.

Here's one way they get away with it.

Medicare payments are based on a patient's risk factors or diagnosed conditions — not payments for actual health-care services. Medicare Advantage enrollees are healthier on average than traditional Medicare beneficiaries, yet insurers consistently inflate patient risk scores so they can bilk more money from Uncle Sam.

This scheme is known as "upcoding." By exaggerating the patients' health problems, insurers collect larger payments from government without providing additional health care. It's the health-care equivalent of a driver filing an insurance claim for a fender-bender and seeking reimbursement for much more than the repairs actually cost.

The Medicare Advantage program is supposed to be a free-market supplement to Medicare. But the rules are written as if to fatten the wallets of the hospital and insurance giants — while the taxpayers and employers eat the costs.

Some of my Republican friends argue that Medicare Advantage is a free-market insurance program. Really?

The GOP's Doctors Caucus — people who treat patients firsthand — has increasingly warned that insurers are extracting billions in payments that bear no relation to patients' actual medical needs.

The Trump administration is finally ending this blank-check billing scheme. In January, the administration stunned Medicare Advantage insurers by rejecting a "big boost" in payments. Instead, President Donald Trump wants reforms to root out "upcoding" fraud that pads insurers' profits.

Here's another commonsense way to save money on health care. Trump's Centers for Medicare & Medicaid Services has proposed excluding diagnoses added by an insurer who merely reviews patient records but never actually sees the patient. CMS projects that eliminating such diagnoses would save taxpayers some $7 billion next year alone.

One piece of good news is that some states are auditing hospital billing practices. Indiana's House just unanimously passed the a "payment of health claims" law pushed by Gov. Mike Braun that will root out phony reimbursement scams.

States like Arkansas, Virginia and Ohio are now following Indiana's lead, and Congress should too.

The savings impact of reining in Medicare Advantage fraud reaches into the high tens of billions of dollars every year — money that is effectively stolen from taxpayers and employers. Medicare Advantage is now covering more than half of American seniors.

For too long, fraudulent medical care billing has been treated like a ho-hum cost of doing business in Washington and state capitals. It isn't. It's theft. The victims are patients, employers, doctors and taxpayers.

Trump and Braun should be applauded for demanding that private insurance companies stop bilking taxpayers. If insurers and hospitals keep getting rich by cheating, they should be thrown out of the program.

Stephen Moore is a former Trump senior economic adviser and the cofounder of Unleash Prosperity, which advocates for education freedom for all children.

Older

Forbes Daily: Jerome Powell’s Legacy As Federal Reserve Chair

Newer

Former St. Louis Alderman sentenced for scheme to inflate car repair costs

Advisor News

  • Help child-free clients plan for their later years
  • When new investment trends emerge, Gen Z is most likely generation to be first in
  • Could ‘plain English’ become an advisor’s secret weapon?
  • IRI urges Senate action on 403(b) parity legislation
  • Three estate planning ideas to protect your clients and their wealth
More Advisor News

Annuity News

  • Nationwide adds mutual fund-linked strategy to New Heights Select FIA
  • NUNN INTRODUCES BILL TO CUT RED TAPE, GIVE IOWANS CLEARER INSURANCE INFORMATION
  • NAIC working group pressed to accelerate annuity illustration overhaul
  • State Auditor James Brown Kicks Off Life Insurance Awareness Month With Policy Locator Tool
  • Wink: Annuity sales post strong Q2, led by MYGAs and structured products
More Annuity News

Health/Employee Benefits News

  • Starbucks raises health insurance premiums, sparking worker tension
  • Opinion: The Colorado Option is failing to meet the needs of small businesses for healthcare coverage
  • New Managed Care Study Results from Brown University School of Public Health Described (Roles and Priorities Guiding Medicare Advantage Postacute Home Health Referrals): Managed Care
  • Reports Summarize Managed Care Findings from University of Arkansas for Medical Sciences (Potentially Inappropriate Medication Use Following Hospital Discharge Among Medicare Beneficiaries): Managed Care
  • New Cancer Findings from Anuraag R. Kansal and Colleagues Discussed (State Medicaid Budgetary Implications of New Cancers): Cancer
Sponsor
More Health/Employee Benefits News

Life Insurance News

  • TDCI reminds consumers to focus on future during Life Insurance Awareness Month
  • TDCI reminds consumers to focus on the future during Life Insurance Awareness Month
  • AM Best Affirms Credit Ratings of Zurich Insurance Group Ltd and Its Main Rated Subsidiaries
  • Best’s Market Segment Report: AM Best Maintains Stable Outlook on China’s Non-Life Insurance Segment
  • Understanding Nonequity Split-Dollar
Sponsor
More Life Insurance News

NEWS INSIDE

  • Companies
  • Earnings
  • Economic News
  • INN Magazine
  • Insurtech News
  • Newswires Feed
  • Regulation News
  • Washington Wire
  • Videos

FEATURED OFFERS

Press Releases

  • Classic Car Insurer OpenRoad Insurance Expands to 40 U.S. States in Two Years
  • How Aspire General Turned an Early Technology Bet Into Claims Automation at Scale with Kyber
  • Adjusto launches AI-Native contents claims services powered by its technology platform
  • URL Insurance Group Celebrates 40 Years of Service, Growth, and Industry Leadership
  • MassMutual Ascend Surpasses $2 Billion in Lifetime Advisory Annuity Sales, Reflecting Continued Momentum in RIA Channel
More Press Releases > Add Your Press Release >

How to Write For InsuranceNewsNet

Find out how you can submit content for publishing on our website.
View Guidelines

Topics

  • Advisor News
  • Annuity Index
  • Annuity News
  • Companies
  • Earnings
  • Fiduciary
  • From the Field: Expert Insights
  • Health/Employee Benefits
  • Insurance & Financial Fraud
  • INN Magazine
  • Insiders Only
  • Life Insurance News
  • Newswires
  • Property and Casualty
  • Regulation News
  • Sponsored Articles
  • Washington Wire
  • Videos
  • ———
  • About
  • Meet our Editorial Staff
  • Advertise
  • Contact
  • Newsletters

Top Sections

  • AdvisorNews
  • Annuity News
  • Health/Employee Benefits News
  • InsuranceNewsNet Magazine
  • Life Insurance News
  • Property and Casualty News
  • Washington Wire

Our Company

  • About
  • Advertise
  • Contact
  • Meet our Editorial Staff
  • Magazine Subscription
  • Write for INN

Sign up for our FREE e-Newsletter!

Get breaking news, exclusive stories, and money- making insights straight into your inbox.

select Newsletter Options
Facebook Linkedin Twitter
© 2026 InsuranceNewsNet.com, Inc. All rights reserved.
  • Terms & Conditions
  • Privacy Policy
  • InsuranceNewsNet Magazine

Sign in with your Insider Pro Account

Not registered? Become an Insider Pro.