Insurers could secure a nearly 8% rate increase in Medicare Advantage for 2023, so it's little surprise that the response from the industry to the Biden administration's proposal has been largely positive.
The Centers for Medicare & Medicaid Services (CMS) released its Advance Notice for MA and Medicare Part D late Wednesday, which proposes a 7.98% payment increase as well as a number of provisions to address health equity. For one, CMS wants to incorporate health equity data into its star ratings calculations and has asked for feedback on the best way to do so.
AHIP said in an initial statement that it backs having such a discussion.
"We agree that MA plans play an essential role in improving health equity and addressing the social determinants of health that impact millions of seniors and people with disabilities," CEO Matt Eyles said. "We support CMS soliciting input on ways to advance these important goals."
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Insurance industry groups said they are continuing to review the proposal and will weigh in with full commentary. Comments on the regulation are due March 4, with the final rate set to be published by April 4.
Justine Handelman, senior vice president of the office of policy and representation for the Blue Cross Blue Shield Association, said the proposals are "much-needed."
“Today’s proposed updates will help provide much-needed stability for the more than 28 million Medicare Advantage members across the country," Handelman said in a statement. "We thank the administration for their commitment to ensuring beneficiaries continue to get the care they need, and we look forward to working together to advance health equity, provide patient-centered care and make health care more affordable.”