Medicare Advantage Payments Rise

April 11, 2016


The Centers for Medicare & Medicaid Services has raised payments for insurers selling Medicare Advantage plans by an average of 0.85% for 2017, down from the 1.35% the agency had proposed earlier. When adjustments are made for patient severity and utilization, overall revenues from the increase are expected to rise about 3%.


Some 17 million people—about one in three Medicare beneficiaries—are enrolled in Medicare Advantage plans, which are the managed-care portion of Medicare and are managed by private health insurers such as Anthem and Aetna. Since 2010, Medicare Advantage enrollment has increased by more than 50%.