Medicare Covid-19 Spending Could Exceed $115 Billion, Study Says

The Covid-19 pandemic could cost Medicare anywhere from nearly $40 billion to more than $115 billion over the next year, depending on severity of the outbreak and hospitalization rates, according to a new analysis.

The analysis by the National Association of Accountable Care Organizations suggests the unpredictable nature of the crisis could present major financial challenges for Medicare’s push to control program spending through value-based care.

Accountable care organizations—the groups of doctors, hospitals, and other caregivers that provide coordinated care for traditional Medicare beneficiaries—can be penalized financially if their treatment of Medicare patients costs more than agreed-upon thresholds.

The association ...