CMS Boosts 2027 Medicare Advantage Payments

The federal government will increase payments to private Medicare insurers by 2.48 percent in 2027, far more than it initially proposed. The Centers for Medicare & Medicaid Services (CMS) said on April 6 that the finalized rate will translate into more than $13 billion in additional payments to Medicare Advantage (MA) plans next year. In January, the agency had proposed a much smaller average increase of 0.09 percent, or about $700 million. CMS said the 2.48 percent figure includes several factors affecting payments, including growth in underlying costs, 2026 Star Ratings that will determine 2027 quality bonus payments, and risk-adjustment updates. When estimated risk-score trends are included, the agency said, the overall payment increase will amount to 4.98 percent....