CMS Announces Preliminary Estimate of 0.5% Increase in Medicare Advantage Growth Rate for 2010
CMS on Friday announced a preliminary estimate of a 0.5% increase in the National Per Capita Medicare Advantage Growth Percentage for 2010, a move that prompted America's Health Insurance Plans on Monday to warn that MA plans could experience a decrease in reimbursements as a result, CQ HealthBeat reports. The 0.5% increase takes into account a scheduled 20% reduction in Medicare reimbursements to physicians in 2010; Congress has prevented similar decreases in the past.Robert Zirkelbach, a spokesperson for AHIP, said that the 0.5% increase could result in a 5% decrease in reimbursements for MA plans and prompt plans to increase payments for Medicare beneficiaries and provide fewer benefits.
Alec Vachon, a health care consultant and a former Republican congressional aide, said that the 0.5% increase indicates that the Obama administration plans to reduce Medicare reimbursements to MA plans. He said, "Companies expected at least another year of free drinks at Club MA before Congress closes the open bar in 2011."
According to CQ HealthBeat, Congress likely would not reduce Medicare reimbursements to MA plans until 2011 because the bidding process for 2010 is ongoing.
Additional Announcements
In addition to the 0.5% increase, CMS announced policy and technical changes, such as new risk adjustment factors that would increase Medicare reimbursements to MA plans and prescription drug plans that enroll beneficiaries with higher health care costs. CMS also announced that the standard deductible for Medicare beneficiaries enrolled in prescription drug plans will increase from $295 this year to an estimated $305 next year and that the range of the "doughnut hole" coverage gap will increase from between $2,700 and $4,350 to between $2,780 and $4,500.
CMS officials said that the agency will accept public comments on the announcements until March 6 and will announce final Medicare reimbursement rates for individual counties on April 6 (CQ HealthBeat, 2/23).
