CHA News Article

CMS Issues 2015 Medicare Advantage Rate Announcement

The Centers for Medicare & Medicaid Services (CMS) yesterday issued its 2015 rate announcement for Medicare Advantage (MA) and prescription drug benefit (Part D) programs. CMS originally proposed what would have amounted to a 1.9 percent decrease but finalized a 0.4 percent increase.

CMS will also implement a new phase-in schedule for the Part C risk adjustment model introduced in 2014, refining its risk adjustment methodology to account for the impact of the influx of baby boomers, but will not finalize its proposal to exclude diagnoses from enrollee risk assessments. In addition, CMS will delay the proposed implementation of a new Part D risk adjustment model and changes to star ratings for MA plans, and will not finalize its proposal to require additional coverage in the gap for generic and brand drugs in enhanced alternative plans. The rate announcement is attached.