On April 19, the U.S. Department of Health and Human Services Office of Inspector General (OIG) issued Advisory Opinion 16-04.
It related to the use of a preferred hospital network as part of Medicare Supplemental Insurance (Medigap) policies. Three insurance companies were proposing to indirectly contract with hospitals for discounts on otherwise applicable Medicare inpatient deductibles for their policyholders. In turn, they would provide a premium credit of $100 to policyholders who use a network hospital for an inpatient stay. This was the proposed arrangement.
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