News Briefs: Industry Orgs Decry Proposed Medicare Advantage Payment Cut
Health insurance industry groups are sounding off about the 2024 Advance Notice for Medicare Advantage and Part D plans, warning that it could effectively cut payments to plans and have downstream effects on beneficiaries. CMS estimated in the Advance Notice that MA organizations can expect an average revenue change of 1.03%. Yet an Avalere analysis funded by the industry-aligned Better Medicare Alliance pointed out that without CMS’s risk score growth projection of 3.3%, there would actually be a 2.27% reduction in revenue for MA plans. “This decrease in payment to plans could result in less funding that plans use to offer supplemental benefits and lower premiums for their enrollees,” with an estimated $540 decrease in benefits per member per year, Avalere said. And AHIP President and CEO Matt Eyles expressed concern about the “new uncertainties” created by the Advance Notice and the sweeping MA and Part D proposed rule for the 2024 contract year. “We are particularly very concerned about changes proposed by the Advance Rate Notice, which would result in billions of dollars of cuts to the MA program, leading to higher premiums and fewer benefits for enrollees. We encourage CMS to work together with other partners to ensure that seniors and people [with] disabilities can continue to benefit from the improved health and financial security that MA offers them,” Eyles said.