Medicare Advantage Cuts Expected

Christopher Cheney, for HealthLeaders Media , April 4, 2014

A study AHIP commissioned in late February pegged the likely 2015 payment rate cut for MA at 5.9 percent. The New York-based management consulting firm Oliver Wyman conducted the research.

For beneficiaries, the payment cut would result in reductions of MA benefits or increases in MA out-of-pocket costs from $35 to $75, the study predicts. The dollar impact on beneficiaries from the 6 percent MA payment cut in the current year ranges from $30 to $70, it says.

Other changes CMS is expected to announce Monday include the transition from the demonstration phase of the MA five-star ratings program to a more stringent operational phase. One of the biggest changes slated for the star-based ratings program in 2015 is giving CMS authority to terminate MA health plans that earn less than a four-star rating for three consecutive years.


Christopher Cheney is the senior finance editor at HealthLeaders Media.
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