CMS Proposes 0.85% Increase To Medicare Advantage Rates In 2017; Effective Acuity-Based System Increase Of 3.05% Anticipated

Medicare Advantage rates are slated to increase by 0.85% for the 2017 plan year. After taking into account how Medicare Advantage plans code member condition severity, the average Medicare Advantage payment rate will increase by 3.05%. For 2017, 25% of Medicare Advantage risk scores will be based on encounter data that tracks with medical claims, and 75% will be based on traditional fee-for-service data. By 2020, all Medicare Advantage risk scores will be based 100% on encounter data.

The federal Centers for Medicare & Medicaid Services (CMS) announced the rate increase in the “Announcement of Calendar . . .