Final Rule Provides Slight Increase In Medicare Advantage Payments
The payment amount decision, which came after heavy lobbying, was a bit lower than the administration initially suggested. On another part of the rule, however, the administration delayed efforts to cut payments to employer-sponsored Medicare Advantage plans.
The Wall Street Journal:
Federal Regulators Issue Medicare Advantage Rates For 2017
Federal regulators said Monday that payments to insurers that offer private Medicare plans to older Americans would rise slightly, but somewhat less than the government indicated earlier this year. The increase represents a boost for companies who offer the plans under Medicare Advantage, the program in which beneficiaries can get Medicare policies from private companies, which are then reimbursed by the federal government. ean Cavanaugh, deputy administrator at the Centers for Medicare and Medicaid Services, said the Medicare Advantage payments would increase 0.85% on average for 2017, and that insurers would likely see overall revenue increase about 3.05%, in a final rule published Monday. (Radnofsky and Armour, 4/4)
Reuters:
U.S. To Raise Payments To Insurers For Medicare Advantage 2017 Plans
Each year, the government sets out how it will reimburse insurers for the healthcare services their members use. Payments vary by region, the quality rating earned by the health plan and the relative health of the members. The proposal is always subject to industry lobbying and often changes before it is finalized. (Humer, 4/4)
The Associated Press:
Modest Payment Increase For Medicare Advantage In 2017
Medicare says private insurance plans serving as an alternative for 17 million beneficiaries will get a modest payment increase next year. ... Medicare Advantage plans cover nearly one out of three beneficiaries, a steadily growing share of the program. They offer lower overall costs for many patients, in exchange for some limitations on choice. (4/4)
Bloomberg:
U.S. Increases 2017 Medicare Advantage Rates Less Than Expected
The Obama administration has been pushing to contain costs for Medicare Advantage since the Affordable Care Act became law in 2010. At the time, the U.S. was spending about 10 percent more for each Medicare Advantage beneficiary than for the traditional Medicare program. Spending per Medicare Advantage recipient is about 2 percent higher this year, according to the Medicare Payment Advisory Commission, known as MedPAC, which advises Congress on payment policies. (Tracer, 4/4)
Modern Healthcare:
Final Medicare Advantage Rates Largely Shun Health Plan Lobbying
The federal government has lowered average payments for 2017 Medicare Advantage plans, and it also modified several of the program's policies after weeks of unremitting lobbying from the health insurance industry. Overall, the Obama administration showed a commitment to proposals the powerful industry vehemently opposed. One of the most notable policy changes within the CMS' 250-page policy document was the decision to phase in cuts to employer-sponsored Medicare Advantage plans over two years instead of instituting the cuts in 2017. That policy was not nixed altogether, much to the chagrin of insurers. (Herman, 4/4)
Morning Consult:
After Intense Lobbying, Administration Slows Retiree Health Plan Changes
The Centers for Medicare and Medicaid Services will still decrease payments to Medicare employer retiree plans, but will implement the policy change over a two-year period rather than immediately this August. The Monday announcement comes as part of the finalized 2017 payment rates for Medicare Advantage plans, and after insurers, some unions, employers and lawmakers urged the agency not to finalize the proposal. While the agency did not completely reverse course, the two-year transition will somewhat mitigate the effects on insurers, Sean Cavanaugh, CMS’ deputy administrator and director of the Center for Medicare said on a press call Monday. (McIntire, 4/4)
