MA Pay Hike Inadequate; Physicians Upset
Health plans stocks did well on the news that Medicare Advantage (MA) rate hikes would improve in 2026, but many are still calling the increase inadequate and hope the incoming Trump administration will offer more relief. Advocates for MA are saying individual plan offerings will still have to decrease in 2026 after a major contraction in 2025. See my blog today digesting the announcement: https://www.healthcarelabyrinth.com/calling-all-plans-advance-notice-released-for-2026-ma-and-part-d-rates-and-other-policies/ .
In related news, physicians are very upset that health plans will see an increase while they will see a fifth year of reductions. Docs feel plans are getting preferential treatment. I see the docs’ point.
In other news, the Centers for Medicare and Medicaid Services (CMS) want to continue a premium stabilization program for standalone Part D (PDP) plans. A spike in premiums would have occurred without the program. Republicans think the program could be extra-legal (as I do). The spikes are related to the misguided and unfunded Medicare Part D cost-sharing reductions pushed through by Democrats in the Inflation Reduction Act (IRA).
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Additional articles: https://www.fiercehealthcare.com/payers/cms-proposes-increasing-medicare-advantage-benchmark-payments-223-or-21-billion and https://insidehealthpolicy.com/inside-drug-pricing-daily-news/cms-aims-cement-part-d-stabilization-demo-new-admin-hits
#medicareadvantage #rates #physicians #cms #partd #pdp