Centers for Medicare & Medicaid Services Lowers Cut To Medicare Advantage Payments In 2024

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  • The U.S. government announced on Friday a lower-than-expected 1.1% average cut of 2024 reimbursement rates for health insurers.
  • The Centers for Medicare and Medicaid Services announced its phasing in payment changes for privatized Medicare plans over the next three years — and estimated that insurers would see an average 3.32% payment increase, or $13.8 billion, in 2024 compared to 2023
  • The U.S. Centers for Medicare and Medicaid (CMS) said it expected total payments for next year to rise by 3.3% from 2023, or around $13.8 billion, up from its 1% initial estimate, Reuters reported, and reduced drops on some costs resulting from rule changes.
  • Health insurers operating Medicare Advantage plans have come under pressure after the government proposed new rules for an audit program last month to avoid overpaying them.
  • "The policies finalized in this Rate Announcement will help make more accurate payments. This reduces incentives to cherry-pick healthy beneficiaries and discriminate against sicker patients," CMS said.
  • Shares of UnitedHealth Group Inc UNH and Humana Inc HUMElevance Health Inc ELVCVS Health Corp CVS, and Cigna Group CI was up around 1% during the premarket session on the last check Monday.
  • Medicare hospice payments could grow by as much as 2.8%, or $720 million, next year under a rule recently proposed by CMS.
  • It seeks to update the Medicare payment rates for hospice care in fiscal year (FY) 2024 based on a 3 percent update to the market basket, reduced by a 0.2 percent productivity adjustment. The result is an updated payment cap per patient of $33,396.55.
  • Photo via Wikimedia Commons
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Posted In: GovernmentNewsHealth CareGeneralBriefs
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