Healthcare DIVE February 1, 2024
Rebecca Pifer

The CMS proposed a 0.2% dip in MA rates. However, analysts said regulators will likely improve the payment rate in the final notice.

Health insurers in Medicare Advantage will see their payment rates drop slightly in 2025 if a new proposed regulation is finalized.

The CMS on Wednesday released preliminary reimbursement rates for privately run Medicare plans that increases overall reimbursement by about 3.7%, but includes a 3.9% adjustment for risk coding.

All together, that amounts to a 0.2% payment decrease — though, the government estimated MA plans should still receive $16 billion more in payments than this year.

The rate change is modestly disappointing for insurers, but there’s a good chance the reimbursement rate could improve in the final...

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