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CMS Proposes Reductions to Medicare Advantage Payments

The Obama administration on Friday proposed reductions to payments for Medicare Advantage plans in 2015, the New York Times reports (Pear, New York Times, 2/21). The proposed cuts were detailed in a 148-page assessment of cost factors for MA plans for 2015, which noted multiple variables moving in different directions (Alonso-Zaldivar, AP/Sacramento Bee, 2/22). Specifically, CMS said the cuts were ameliorated by a projected 3.55% drop in the Medicare Advantage growth rate factor and a 1.65% decline in per-capita expenditures for Medicare’s fee-for-service program (Modern Healthcare, 2/22). Read more…

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