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CMS Proposed Cuts to Medicare Advantage Plans

Tamara A. Klein
Edwards Wildman Palmer LLP - Boston Office

Leslie J. Levinson
Edwards Wildman Palmer LLP - New York Office

February 25, 2014

Previously published on February 2014

On February 21, the Centers for Medicare & Medicaid Services (CMS) released a proposal to decrease payments to Medicare Advantage plans by 3.6 percent in 2015. This decrease would impact more than 15 million people, or 30% of all Medicare beneficiaries, who are currently enrolled in Medicare Advantage plans offered by private insurers.

The trade association, America’s Health Insurance Plans, expressed concerns that the reduced payments would harm quality of coverage for seniors in the program, noting that last year’s 6 percent cut to Medicare Advantage rates resulted in higher premiums and reduced benefits.

The final rule will be released April 7.


The views expressed in this document are solely the views of the author and not Martindale-Hubbell. This document is intended for informational purposes only and is not legal advice or a substitute for consultation with a licensed legal professional in a particular case or circumstance.

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