posted by Clare Krusing
on March 3, 2016
Washington, D.C. – Millions of seniors who depend on Medicare Advantage plans could face additional threats to their coverage and benefits if new payment changes recently proposed by CMS take effect next year, according to a new analysis by Oliver Wyman prepared for America’s Health Insurance Plans (AHIP). “Such reductions, coupled with the reductions experienced in 2014 through 2016, could have a significant impact on the sustainability of Medicare Advantage Organization (MAO) program participation and the ability of MAOs to provide stable benefits and affordable premiums to their members,” the report states.
Last month, CMS released proposed changes to Medicare Advantage that will impact the 17 million seniors enrolled in the program. According to the report from Oliver Wyman, these changes, if finalized, would result in an estimated 0.5 to 3.9 percent cut on average to Medicare Advantage payments in 2017. These proposed payment reductions add to ACA funding reductions that continue to be phased-in for one-third of the country. Moreover, these proposals build additional layers of complexity, uncertainty, and unpredictability into the Medicare Advantage program.
The most significant cuts to the Medicare Advantage program include:
“Seniors should not face any further cuts to their Medicare Advantage coverage,” AHIP President and CEO Marilyn Tavenner said. “CMS’ proposals would jeopardize the benefits and care coordination programs that have improved beneficiaries’ health. We urge CMS to protect millions of seniors across the country by avoiding further cuts to Medicare Advantage and providing much needed stability to beneficiaries’ coverage.”
The new report comes at a time when a growing number of voices are urging CMS to prevent further cuts to Medicare Advantage, including more than 370 members of Congress. AHIP’s Coalition for Medicare Choices (CMC), the largest advocacy group of more than 2 million Medicare Advantage seniors, recently launched a nationwide grassroots and ad campaign to protect Medicare Advantage. Final payment rates are expected on April 4, 2016.
To view the full report, click here.
Providing Health Benefits for Over 200 Million Americans.