Apr. 7 at 3:00 PM
Trump Admin to raise payments to Medicare insurers by +2.48% next year, a dramatic increase after a preliminary proposal holding rates flat
2027 rates for Medicare Advantage, the private-insurer version of the federal program for seniors and the disabled, came in above some analysts' expectations of around +1%
The final increase represents about
$13B in additional payments to the insurers
Medicare plans' billing will raise the overall 2027 payment increase to +4.98% w/ the final rate changes added in
The 2027 final rates were boosted by several factors, including a slightly higher growth est for the underlying cost of healthcare, which is used to help calculate insurers' payments. Also bolstered by the Trump admin's decision to delay a recalibration of the system that ties insurer payments to the health of enrollees
CMS was worried that was worried about the risk of Medicare insurers pulling out of markets & cutbacks to Medicare plans' benefits
$XLV $UNH $ELV $HUM $CNC