News Headlines Article

Lower update slated for Advantage plans
Modern Healthcare

Medicare Advantage health insurance plans will receive a lower-than-expected increase in payments next year under final CMS rates. Those plans will get about a 0.4% increase on average in 2012, or about one quarter of the 1.6% increase proposed by the agency in February.

The smaller increase stemmed from a lower-than-expected increase in Medicare’s per capita spending, which will likely grow by only 0.16% instead of the earlier 0.7% estimate. That decreased spending was the result of reduced demand for services from beneficiaries, according to CMS officials.