Video: Superheroes, Secret Identities & You| Webinar: ACR/CHEST ILD Guidelines in Practice

An official publication of the ACR and the ARP serving rheumatologists and rheumatology professionals

U.S. to Raise Payments to Insurers for Medicare Advantage 2017 Plans

Caroline Humer  |  

NEW YORK (Reuters)—U.S. health insurers that provide Medicare Advantage plans to elderly and disabled Americans will receive government payments in 2017 that are 0.85 percent higher on average than in 2016, reflecting small anticipated growth in medical costs, the U.S. Department of Health and Human Services said on Monday.

Health and Human Services’ final plan to raise payments is a bit lower than the 1.35% increase the agency had proposed in February. It said the lower figure reflects revisions to medical services cost calculations.

ADVERTISEMENT
SCROLL TO CONTINUE

In addition, the agency said it planned to introduce a two-year transition period to implement reductions in payments to insurers that offer employer-sponsored prescription drug plans for retirees. After it proposed the cuts to 2017 payments in February, insurers and other lobbying groups said the agency was too aggressive.

Insurers including UnitedHealth Group Inc., Aetna Inc. and Anthem Inc. manage health benefits for more than 17 million Americans enrolled in Medicare Advantage plans.

ADVERTISEMENT
SCROLL TO CONTINUE

The other more than 30 million people eligible for Medicare coverage are part of the government-run fee-for-service program.

Each year the government sets out how it will reimburse insurers for the healthcare services their members use. Payments vary by region, the quality rating earned by the plan, and the relative health of the members.

Related Articles

    U.S. Proposes Hike in Medicare Advantage Payments; Insurer Shares Rise

    NEW YORK (Reuters)—The U.S. government on Friday proposed raising payments by 1.35% on average next year to the health insurers who offer Medicare Advantage health benefits to elderly and disabled Americans. Payments to insurers will vary under the 2017 Medicare Advantage proposal, based on the region the plans are sold and on the size of…

    Complex Patients More Likely to Switch from Medicare Advantage

    NEW YORK (Reuters Health)—Medicare Advantage plans might not be meeting the needs of patients requiring the costliest and most complex levels of care, a new study suggests. Between 2010 and 2011, such patients were more likely to switch from Medicare Advantage plans to traditional Medicare, rather than vice versa, researchers found. ad goes here:advert-1ADVERTISEMENTSCROLL TO…

    Few Medicare Advantage Plans Cover Social Needs for Chronically Ill Patients

    (Reuters Health)—Most Medicare Advantage plans are not offering chronically ill enrollees supplemental benefits to address social needs, which were added to the government health program in 2018 in an effort to improve health outcomes and achieve cost savings, a U.S. study suggests.1 Researchers examined publicly available data on benefits and plan design for Medicare Advantage…

    Medicare Advantage Grows, but Provider Choice Is Limited

    CHICAGO (Reuters)—Medicare enrollees are moving in greater numbers than ever to the program’s managed care option as a way to save money. But the tradeoff is much less ability to use their preferred doctors and hospitals. Seniors can choose between traditional fee-for-service Medicare—which is accepted by most healthcare providers—or a Medicare Advantage plan. The latter…