BNA’s Health Care Daily Report™ sets the standard for reliable, high-intensity coverage of breaking health care news, covering all major legal, policy, industry, and consumer developments in a...
By Mindy Yochelson
Dec. 2 — The Medicare agency's preview of underlying numbers behind Medicare managed care rates for 2017 shows payments could increase over 2016, according to a memorandum released Dec. 1.
Jennifer Lazio, director of the Centers for Medicare & Medicaid Services' Parts C & D Actuarial Group, told plans of a projected rise in the 2017 fee-for-service United States Per Capita Cost (USPCC) for beneficiaries.
The USPCC is a component used to determine county payment rates to plans. “Based on these estimates, the early preview of the [calendar year] 2017 ratebook growth rates” is projected to be 3.1 percent, the memo said.
Barclays Capital Inc. called the announcement “an early holiday gift” for the managed care industry. Although the announcement is only a “starting point,” and there will be “many other reconciling items,” the company said in an analysis that “we view the overall preview as a positive.”
Lazio, however, cautioned that “estimates are preliminary and could change when the final rates are published.”
In the 2016 preliminary rate notice, the CMS predicted that rates would drop by 0.95 percent but they actually increased by 1.25 percent (66 HCDR, 4/7/15).
Preliminary rates for 2017 will be published in a 45-day notice on Feb. 19, 2016, and the final rate announcement will be made on April 4, 2016.
As has been the case over the past couple of years, these estimates do change as the CMS considers different policy options for Medicare Advantage, a spokeswoman for America's Health Insurance Plans, the main trade association representing the health insurance industry, told Bloomberg BNA.
With Affordable Care Act cuts to MA continuing, the growing program needs to be strengthened as millions of beneficiaries depend on it, she said.
To contact the reporter on this story: Mindy Yochelson in Washington at email@example.com
To contact the editor responsible for this story: Brent Bierman at firstname.lastname@example.org
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)