Health Payer Intelligence October 25, 2022
Almost 22 percent of beneficiaries in terminated Medicare Advantage contracts were Black, compared to 14.3 percent of beneficiaries in non-terminated contracts, highlighting how contract terminations can impact racial health disparities.
Medicare Advantage contract terminations may exacerbate racial health disparities, as contracts that were terminated between 2011 and 2020 served higher rates of Black beneficiaries, a study published in JAMA Health Forum found.
CMS contracts with private payers annually to provide Medicare services through Medicare Advantage plans. The payers can choose to terminate the contract, or CMS can terminate the contract if the plan consistently performs poorly.
These terminations may impact care for beneficiaries and cause them to switch to traditional Medicare or another Medicare Advantage plan with different benefits,...
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