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Biden proposes $21B pay increase for MA insurers

By Axios  
   January 14, 2025

Insurers who administer private Medicare plans could see a more than $21 billion pay increase in 2026 under a plan proposed by the Biden administration. The adjustment would be a boon for UnitedHealth Group, the country's largest Medicare Advantage insurer. Other major MA players like Humana and CVS Health would also benefit. The Trump administration will have discretion over how the final policy looks, and analysts expect the ultimate pay increase to be even higher. The Biden administration proposed raising plans' base payment by about 2% next year. But the insurers in reality would get an average 4.3% increase in overall revenue once rates are adjusted for how sick their enrollees appear, CMS says.

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