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CMS Proposes Medicare Advantage Payment Cut of At Least 1.9 Percent
Health Leaders Media

The Centers for Medicare & Medicaid Services is proposing a Medicare Advantage pay cut of at least 1.9 percent despite urging from lawmakers and insurers to maintain current payment rates in 2015.

The payment cut would affect Medicare Advantage health plans in 2015.

“Preliminary estimate of the combined effect of the Medicare Advantage growth percentage and the fee-for-service growth percentage is estimated to be -1.9 percent,” CMS said Friday. The agency released a 148-page document detailing proposed MA payment and other changes in the fiscal year starting in October. “This historically low growth in Medicare per-capita spending is tied, in part, to successful initiatives undertaken to promote value over volume and help curb fraud, waste, and abuse in the Medicare fee-for-service program in recent years.”

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