On Monday, April 6, the CMS announced that Medicare Advantage payment rates will increase by 1.25% on average in 2016. With the expected growth of risk scores, payments will increase 3.25% on average. The government estimated last February that these rates would decline 0.95% on average and would increase to 1.05% when risk scores are included.
A Look into Medicare Advantage
• More than 17.3 million are enrolled in a Medicare Advantage plan, which is about one-third of all Medicare beneficiaries
• Membership has grown by more than 8% every year since 2010
• These plans use a risk-coding model that adjusts for different demographics and conditions
• Spending in this program is higher than traditional Medicare
According to Ipsita Smolinski, managing director of consulting firm Capitol Street, “It’s not like CMS made any major policy changes. But nevertheless, it’s good news for the Medicare Advantage plans and for seniors, who love the plans.”
To read more, click here.