CMS Reverses Decision to Cut Medicare Advantage Rates
- By BSTQ Staff
In April, the Centers for Medicare & Medicaid Services (CMS) reversed its decision to cut Medicare Advantage payments to insurers by 2.2 percent in 2014 and instead agreed to give them a 3.3 percent increase. The decision came after a lobbying campaign from lawmakers, insurers and trade associations, particularly America’s Health Insurance Plans (AHIP). AHIP released a report conducted by actuarial consulting firm Oliver Wyman that showed had the rates been cut by 2.2 percent, the average Medicare Advantage beneficiary’s premium would have risen $50 to $90 higher each month with a possible reduction in benefits.
“By being responsive to the more than 160 members of Congress from both parties who raised concerns about the impact of the proposed payment rate on seniors, CMS has taken an important step to help stabilize Medicare Advantage at a time when the program is facing significant challenges,” said AHIP President and CEO Karen Ignagni. “We are currently reviewing the final rate announcement and will continue to work with policymakers in both parties to strengthen this critically important part of Medicare.”
