CMS finalizes 2017 payment and policy updates for Medicare Health and Drug Plans

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The Centers for Medicare & Medicaid Services (CMS) today released the final Medicare Advantage and Part D Prescription Drug Program changes for 2017 that seek to provide stable payments to plans, and make improvements to the program for plans that provide high quality care to the most vulnerable enrollees.

“We continue to strengthen Medicare Advantage and Medicare Part D, in particular for enrollees who need additional investments in their health, such as dually Medicare-Medicaid eligible individuals and those with complex socioeconomic needs,” said Acting Administrator Andy Slavitt. “With these policies, we will continue to see improvements in growth, affordability, benefits, and quality for millions of seniors and people living with disabilities.”

The final policies are similar to those proposed in February but incorporate several changes in response to feedback received during the public comment period. On average, the expected revenue change is 0.85 percent without accounting for the expected growth in coding acuity that has typically added another 2.2 percent. The final revenue increase is somewhat smaller than the increase estimated in the February Advance Notice due primarily to technical updates in the risk adjustment normalization factor. Read more…


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