CMS Announces Increase in Medicare Advantage Plan Payments

April 2—The Centers for Medicare & Medicaid Services (CMS) reversed policy with its announcement of a 3.3 percent payment rate increase in 2014 to Medicare Advantage plans, instead of the 2.3 percent cut the agency originally proposed in February. 

The revised estimate assumes a zero percent change for the 2014 physician fee schedule by taking into account a likely congressional override of the 25 percent physician payment reduction scheduled for 2014, CMS said in the release. 

“By being responsive to the more than 160 members of Congress from both parties who raised concerns about the impact of the proposed payment rate on seniors, CMS has taken an important step to help stabilize Medicare Advantage,” America’s Health Insurance Plans (AHIP) President and CEO Karen Ignagni said in a statement. AHIP had previously released a report conducted by an actuarial consulting firm arguing that Medicare Advantage beneficiaries could see higher monthly premiums and reduced benefits if the payment cut were made.