Marshall Riddle, Senior Analyst, MCOL

On Friday February 21st, the Centers for Medicare & Medicaid Services (CMS) released their proposed 2015 payment and policy updates for Medicare Health and Drug Plans. CMS claims the proposed updates take "important steps to improve payment accuracy for Medicare Advantage (Part C) for 2015." Those in the insurance industry see it differently (cuts, not improvement in payment accuracy), as stated by America's Health Insurance Plans' (AHIP) President and CEO Karen Ignagni;

"The new proposed Medicare Advantage cuts would cause seniors in the program to lose benefits and choices on which they depend. Last year’s six percent cut to Medicare Advantage rates resulted in higher premiums, reduced benefits, fewer coverage options, and loss of provider choices for seniors. Another round of payment cuts would be devastating to the more than 15 million seniors and people with disabilities that have chosen to enroll in Medicare Advantage for the better benefits and higher quality coverage these plans provide."

The cuts being referred to can be found in an Oliver Wyman report analyzing CMS's proposal. You can find a breakdown of the cuts in a recently posted healthsprocket list. You can also view a recently posted list of Medicare Advantage's positive changes since the passage of the Affordable Care Act.