Today the U.S. Department of Health and Human Services Centers for Medicare and Medicaid Services (CMS) announced a proposed 3.55% cut to Medicare Advantage rates for 2015.  The proposal was announced in CMS’s Advance Notice and draft Call Letter.

CMS explained that the projection is based on a decline in per capita expenditures in fee-for-service Medicare.  CMS also proposed a 5% quality bonus payment for Medicare Advantage organizations with four stars or above based on the CMS five-star quality rating system.

CMS will release the final rule outlining calendar year 2015 Medicare Advantage and Part D rates on April 7, 2014.