Medicare Advantage plans overcharged government hundreds of millions but get to hang onto the money

The health insurance industry had long feared that the federal Centers for Medicare & Medicaid Services would demand repayment of billions of dollars in overcharges that Medicare Advantage health plans received going as far back as 2011. But, in a surprise action, the agency says it will require next to nothing from insurers for any excess payments they got from 2011 through 2017. (Getty Images)

Medicare Advantage plans for seniors have dodged a major financial hit as federal officials decided to give them a reprieve on returning hundreds of millions of dollars or more in government overpayments — some dating back a decade or more.

The health insurance industry had long feared that the federal Centers for Medicare & Medicaid Services would demand repayment of billions of dollars in overcharges the popular health plans received going as far back as 2011.