US softens cut to Medicare Advantage 2024 payments

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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 that offer coverage through the Medicare Advantage program, boosting shares of the market's largest players.

It improved the rates it would pay insurers after pushback from the industry, which contended the government was cutting reimbursement rates by too much for them to adequately serve older people enrolled in their plans.

The U.S. Centers for Medicare and Medicaid 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, and reduced drops on some costs resulting from rule changes. Health insurers who operate Medicare Advantage plans have come under pressure after the government last month proposed new rules for an audit program to avoid overpaying them.

The agency said in its final rates announcement on Friday it would phase in the revision over three years and estimated it would result in a smaller drop during the first year. "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 in a statement.

 

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Democrats cut Medicare advantage despite the annual inflation rate for the United States was 6.0%, following a rise of 6.4% in the previous period. So cost of employee's has increased, the cost of supplies has increased (b/c of Biden's war on gas) showing Biden does not care.

The guy that set these plans up says they’re a gigantic rip off of the government and consumers.

I think you meant Medicare DIS-advantage

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