A US Senate panel has criticized airlines for their use of "junk fees," which have raised costs and complexity for consumers. The investigation, led by Senator Richard Blumenthal, revealed that airlines employ algorithms to adjust seat fees dynamically and utilize gate agents to enforce baggage policies, resulting in additional charges for passengers.
A Senate subcommittee criticized U.S. airlines for generating $12.4 billion in seat fees from 2018 to 2023, despite eliminating ticket-change fees for standard economy tickets. The report highlights concerns over "junk fees" and the practices of budget airlines Spirit and Frontier, which faced scrutiny for enforcing bag policies. Airlines for America defended the industry, claiming it offers competitive pricing and value to customers.
A Senate report reveals that major Medicare Advantage insurers, including Humana, UnitedHealthcare, and CVS, are increasingly using technology to deny prior authorization claims for post-acute care, with Humana's denial rates soaring 16 times higher than its overall rates in 2022. The report criticizes these practices as profit-driven, urging the Centers for Medicare & Medicaid Services to enhance oversight and regulation of prior authorization processes. Insurers defend their actions, claiming compliance with CMS standards, while industry leaders call for accountability to protect patient care.
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