Medicare cuts aren’t only going to affect payers in the MA space.
Medicare Advantage plans saw a final rate cut earlier this month, and it caused quite a stir amongst payers. A base rate cut of 0.16% will be seen in MA plans for 2025.
But ultimately payers will see an increase in MA payments in 2025 compared to 2024.
Overall the rate cut won’t bite off much from major payer businesses, but for others, it could.
Five other groups that will likely be more affected by the rate cuts are:
Smaller MA sponsors and their lobbying groups: these groups tried their best to defeat this rule and members will pay dues for the results.
Hospitals and physicians: these groups will see reimbursement cuts to care providers, especially smaller and rural health systems with large MA enrollment.
MA brokers, agents and marketing companies: these groups will see their profits affected by MA marketing tactic constraints as well as member transparency protections.
MA enrollees: this group will see fewer plan options and higher premiums.
Supplemental service providers: this group will see lower CMS payments and possibly be forced to reduce/eliminate supplemental benefits.
Check out the accompanying article here.
Marie DeFreitas is the finance editor for HealthLeaders.