CMS recently announced they are preliminarily raising the reimbursement rate for Medicare Advantage plans

The Centers for Medicare and Medicaid Services recently announced they are preliminarily raising the reimbursement rate for Medicare Advantage plans by 1.6 percent in 2012. This could make the popular plans more profitable for the companies offering them, and perhaps help hold the line on premium increases.

Medicare Advantage plans are privately run versions of Medicare. Subsidized by the government, the plans offer basic Medicare coverage, but with extras like vision or dental coverage – and usually at premiums lower than standard Medicare rates.

According to Forbes, the 1.6% increase is about what investors and provider companies had expected. The final rates will come out on April 4, and the reimbursement rates may vary by plan.

There are about 11.8 million beneficiaries, or nearly a quarter of the total Medicare population, enrolled in a Medicare Advantage plan.