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2008 Medicare Advantage cap rates will rise 3.5%

Plans-and presumably, providers-that participate in capitated Medicare Advantage (MA) plans will receive another pay raise in 2008. Although the rate increase is nothing to write home about and, at face value, might not encourage greater participation by providers in capitated MA plans, any hike in Medicare rates is a positive development at a time when the physician fee schedule faces serious financial pressure. As required by law, on the first Monday in April the Centers for Medicare & Medicaid Services (CMS) published the capitation rates for MA plans and Part D rates for the 2008 calendar year.