Insurers expect that the Centers for Medicare and Medicaid Services’ recent advance notice for Medicare Advantage and Part D plans for the 2024 coverage year will result in a 2.27% cut to plans if finalized, and this could have a negative impact on members’ premiums and benefits, as well as slow MA growth, according to a new Avalere study commissioned by Better Medicare Alliance.
BMA President and CEO Mary Beth Donahue said the rule would raise costs and cut benefits for the roughly 30 million seniors and people with disabilities who are on Medicare Advantage, Healthcare Finance reports.
Payers’ estimates of a more than 2% payment cut contradict projections from CMS, which said it expected a 1.03% increase for plans after factoring in a decline in payments when accounting for risk adjustment changes.
CMS has pushed back, but payers are adamant the changes would result in cuts. Read more.
