Medicare Advantage bonuses poised to drop this year for first time since 2015, KFF says

Healthcare DIVE September 13, 2024
Rebecca Pifer

Still, plans are expected to rake in $11.8 billion in bonuses, with half of that tranche going to just two insurers: UnitedHealthcare and Humana.

Dive Brief:

• Bonus payments to Medicare Advantage plans are expected to fall by $1 billion this year, after the expiration of pandemic-era policies that temporarily increased plans’ star ratings, according to new research.
• The drop reverses a long period of growth in MA bonuses, which critics maintain increase the financial burden on Medicare. MA bonus payments increased more than 400% between 2015 and 2023, according to health policy research firm KFF.
• However, MA plans will still rake in at least $11.8 billion in bonuses this year — still a higher total than in each year...

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