Feds Propose 0.9 Percent Cut in 2016 Medicare Advantage Payments
The U.S. government on Friday proposed a 0.9 percent cut in payments to health insurers for 2016 Medicare Advantage plans, which provide health benefits to more than 16 million elderly or people with disabilities. The cut is part of a notice issued by a division of the U.S. Department of Health and Human Services that sets premium rate benchmarks for Medicare Advantage plans. It reflects a 1.7 percent increase in health care spending as well as payment rates for factors such as health plan quality ratings, health reform costs, and sicker-than-average customers. Analysts and actuaries said some of these factors were worse than expected but added the proposal appeared to be near industry forecasts for a proposal that was about flat with 2015.
David Wingate is an elder law attorney. He practices in Frederick and Montgomery Counties, Maryland. The elder law practice comprises of wills, powers of attorneys, trusts, asset protection and Medicaid.