Trump Medicare Chief Says Private Plans Not Controlling Costs

The Trump administration’s Medicare chief said the version of the program run by private insurers doesn’t do enough to control costs, raising questions about how much the US will pay companies in a crucial upcoming rate update.

Chris Klomp, a top health official at the US Centers for Medicare and Medicaid Services, said the private Medicare Advantage program “does not sufficiently have control of costs,” in remarks at a STAT conference in New York on Thursday.

Centers for Medicare and Medicaid Deputy Administrator Chris Klomp

Photographer: Aaron Schwartz/Bloomberg

Shares of health insurers dropped following the remarks. UnitedHealth Group Inc. closed down 1.4%, Humana Inc. fell 2.3% and CVS Health Corp. ...