Centers for Medicare and Medicaid Services (CMS) Proposes Medicare Advantage Rate Cuts for 2015

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.

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