CMS proposes shakeup for Medicare Advantage

Tuesday, February 23, 2016

WASHINGTON – CMS has proposed changes to Medicare Advantage plans in 2017 that it believes will provide stable and fair payments, and improve the program. The net payment impact of the proposed changes would result in a modest increase of 1.35% on average Medicare Advantage plans, according to a press release. “This moderate growth is consistent with last year’s update and reflects a similar pattern in Medicare fee-for-service,” the agency states. “Plans that improve the quality of care they deliver to enrollees can see higher updates and can grow and enhance the benefits they offer to enrollees.” Proposed changes include implementing a new risk adjustment model, and making an adjustment to plan payments reflective of the statutory minimum. Medicare Advantage has reached record high enrollment each year since 2010, a trend continuing in 2016 with a cumulative increase of 50% to an all-time high of more than 17.1 million beneficiaries. Nearly 32% of Medicare beneficiaries are now enrolled in a Medicare Advantage plan.