Medicare Advantage plans avoid chopping block

Tuesday, April 8, 2014

WASHINGTON – The Obama administration has once again reversed its position on cutting reimbursement for Medicare Advantage (MA) plans. CMS announced this week that reimbursement for MA plans in 2015 would rise, on average, 0.4%, according to news reports. Obama had previously proposed a reduction of, on average, 1.9%. The administration did a similar about-face last year. It proposed a cut of 2.3% for 2014 and ended up increasing reimbursement by 3.3%. Insurers, along with a broad swath of lawmakers, lobbied the government to keep reimbursement level.