As states around the country brace for double-digit premium increases within marketplace plans, premiums for two popular government programs are remaining steady amid climbing enrollment.
Average Medicare Advantage monthly premiums will actually decrease from $32.59 in last year to $31.40 in 2017, according to the Centers for Medicare & Medicaid Services. Meanwhile, enrollment is expected to increase to 18.5 million and cover nearly one-third of all Medicare beneficiaries, building on a surge of new members over the past five years.
Changes to the MA program prompted by the Affordable Care Act drove the enrollment boost, according to CMS. In 2017, the program will cover 60 percent more beneficiaries than it did in 2010, with premiums that are 13 percent lower on average.
Similarly, premiums for Medicare Part D will remain stable at $34 a month in 2017. Since 2010, the program has saved each enrollee an average of more than $2,100 in drug costs.
CMS also announced new updates to the Medicare Advantage Star Rating system that will “strengthen the accuracy of the evaluation system” by accounting for low income, dual-eligible and disabled individuals. The agency has also finalized new payment adjustments that will pay more for beneficiaries in those high risk categories.
Earlier this year, CMS announced a smaller-than-expected payment increase for Medicare Advantage plans, estimating that health plans will see an overall revenue increase of 3.05 percent. Although MA plans have fewer hospitalizations and lower medical costs compared to traditional Medicare, studies show the overall impact on taxpayers is more ambiguous, particularly as concerns surrounding inflated risk scores have picked up steam.