Healthcare stocks plunged in after-hours trading Wednesday after the Centers for Medicare & Medicaid Services announced a sweeping crackdown on Medicare Advantage plans. CMS will now audit all eligible Medicare Advantage contracts annually, expand its audit workforce from 40 to 2,000 coders, and deploy advanced technology to expedite reviews. Administrator Dr. Mehmet Oz emphasized the agency’s commitment to eliminating fraud and ensuring accurate billing. CMS estimates MA plans overbill the government by roughly $17 billion yearly. The agency will also work with HHS’s Office of Inspector General to recover previously identified overpayments.
