Good news out of Washington this week! The federal government announced a Medicare Advantage Payment Rate Increase by 3.3 percent rather than enact a 2.3 percent payment reduction that the Obama administration had proposed in February.
The final rates were released Monday by the Centers for Medicare and Medicaid Services in a turnaround that came after more than a month of intense lobbying from the health insurance industry and members of Congress. Companies that sell Medicare Advantage plans had warned that a sharp cut would impact the benefits available to seniors and might cause carriers to drop plans in some markets.
“CMS has taken an important step to help stabilize Medicare Advantage at a time when the program is facing significant challenges,” America’s Health Insurance Plans Chief Executive Karen Ignagni said.
The Medicare Advantage Payment Rate Increase announcement is welcome news the 14 million American seniors currently participating in Medicare Advantage plans and the agents who serve them.
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