AXIOS April 2, 2024
The Biden administration on Monday followed through on its proposal to cut next year’s base payments to Medicare Advantage plans an average of 0.16%, despite pressure from insurers and their allies in Congress.
Why it matters: While the plans will wind up seeing a net increase once payments are risk-adjusted to account for the health of their customers, the news sent shares of UnitedHealth, CVS Health, Humana and Centene falling amid predictions of continued financial pressure.
State of play: The base pay decrease stems from the continued phase-in of controversial changes to the risk adjustment coding system the Biden administration started last year to make MA payments more accurate.
- Insurers get more money if their enrollees have more documented...
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