On Monday, the Centers for Medicare and Medicare Services (CMS) announced that the average payments for 2017 Medicare Advantage plans will be lowered to 0.85%. Medicare Advantage plans are paid based on how many of the health plans’ members have a high risk score, which is based on the severity of their condition, which is meant to incentivize health plans to cover all seniors regardless of their health. To calculate the payment rate, a “normalization factor” along with other factors are used, and the final 2017 Medicare Advantage Plan rate is lower than what was originally proposed by the CMS. Although the cuts are decided, the reduced pay will not be in effect until 2018.
Read the original article from Modern Healthcare here.
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