ELV - Medicare finalizes 3.3% rise for 2024 Medicare Advantage pay rates

2023-03-31 16:54:35 ET

• The Centers for Medicare & Medicaid Services (CMS) on Friday finalized a decision to raise payment rates for Medicare Advantage plans by 3.3% for 2024, marking an increase from the 1.1% hike the agency proposed in February.
• CMS said the revised rates indicate a ~$13.8B increase in payment rates for MA plans next year.

• Health insurers operating the MA market: Humana ( HUM ), Centene ( CNC ), UnitedHealth ( NYSE: UNH ), CVS Health ( CVS ), Cigna ( CI ), Elevance ( ELV ), Clover Health ( CLOV ) and Alignment Healthcare ( ALHC )

• “Paying Medicare Advantage plans more accurately for the care they provide is how we ensure that people enrolled in Medicare Advantage, especially populations with the highest health disparities and people in underserved communities, can continue to access the care they deserve,” CMS Administrator Chiquita Brooks-LaSure said.
• The preliminary MA payment rates proposed in February pressured managed care players while JPMorgan defended the sector, noting that the final rates could reflect a 50 – 100 bps increase.

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