CMS reverses cut to MA plans

Tuesday, April 7, 2015

WASHINGTON – CMS has reversed a small cut to 2016 payments to Medicare Advantage plans. The agency in February stated payments would decline 0.95%, but this week it stated they would go up 1.25%. “The final revenue increase is larger than the February advance notice largely because the Medicare actuaries recently updated Medicare per capita spending estimates for 2014 and 2015,” CMS stated in a press release. “Medicare per capita spending in 2014, 2015 and 2016 is still expected to be below historical standards.” The agency says payments will likely actually increase 3.25% as insurers deliver and bill for more intensive services.