CMS proposes Medicare Advantage changes for 2017

Editor's Note

The Centers for Medicare & Medicaid Services (CMS) on February 19 announced proposed changes to the Medicare Advantage program for CY 2017, which would increase payment rates by a net 1.35%, the February 19 Modern Healthcare reports.

When factoring in the risk coding tendencies, Medicare Advantage insurers’ revenue will increase 3.55%.

The proposal is a major shift from last February, when initial benchmark rates were cut by 0.95% before factoring in risk score trends, Modern Healthcare says.

Comments on the proposed changes will be accepted until March 4.

Baseline Medicare Advantage payment rates for 2017 will rise by 1.35% on average, an early win for health insurance companies in what is the final Medicare rate battle of the Obama administration. When factoring in the risk coding tendencies, the average change in Medicare Advantage insurers' revenue will climb 3.55% next year, according to a CMS release posted late Friday.