We use cookies to deliver our online services. Details of the cookies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you agree to our use of cookies. To close this message click close.

Calling for Ideas—CMS Releases Final 2018 Medicare Advantage and Part D Rate Announcement and Call Letter

05 April 2017

Health Alert

On 3 April 2017, the Centers for Medicare & Medicaid Services (CMS) released its final Medicare Advantage (MA) and Part D Rate Announcement and Call Letter (Call Letter) for calendar year 2018. The Call Letter is part of CMS’s annual process for setting payment rates, performance requirements, and other rules that apply to MA and Part D plans. CMS previously released the 2018 Advance Notice and draft Call Letter on 1 February 2017. Compared to the draft Call Letter, the final Call Letter increased rates for MA plans by a modest amount and adopted other fairly minor tweaks to the MA and Part D programs. Of perhaps greater note, CMS also released a request for information (RFI) asking for new ideas that the agency could implement in the future to promote flexibility in the MA and Part D programs. Key provisions of the final Call Letter and RFI are summarized below.

Rate Changes

In the final Call Letter, CMS announced an average expected rate increase for MA plans in 2018 of .45% compared to the amounts MA plans received in 2017. This is a slight bump up from the .25% rate increase that was proposed in the draft Call Letter. After taking into account an additional 2.5% increase based upon coding trends, CMS estimates that the rate for an average MA plan will increase by 2.95% in 2018. This is slightly less than the increase from 2016 to 2017, when the rate for an average MA plan increased by 3.05%.

Read More: Calling for Ideas—CMS Releases Final 2018 Medicare Advantage and Part D Rate Announcement and Call Letter.

Special thanks to Isaac Swaiman and Laura McDonald for their contributions to this alert.

Contacts

Loading data