Changes To Medicare Advantage Plan Payments Made Final By CMS Ruling

May 17, 2016

It’s official. Over the next 2 years, CMS will be phasing in changes to how payments are calculated for group Medicare Advantage plans that provide health coverage to employers’ retirees. This is according to a recent ruling from the Centers for Medicare and Medicaid Services (CMS).

The changes are designed to stop substantial overpayments for providing Medicare-covered benefits. Even though CMS will require more competitive bids from employers and their carriers, the agency has said it also still expects the plans to offer comprehensive supplemental benefits.

John Barkett, senior director of policy affairs at Willis Towers Watson, was interviewed by Cort Olson for an article in Employee Benefit News (EBN) on this topic. According to Barkett, the changes have been a long time coming.

“MedPac has been pointing this out for a while, and this year in their annual rule making process, it was cited that employers are not competitively bidding for their Medicare payments,” said Barkett.

Barkett noted that employers were against the changes because they will negatively affect both employers and retirees. The only silver lining for employers is that CMS decided to phase the new rules in over two years rather than one year as was initially proposed.

(MedPAc stands for the Medicare Payment Advisory Commission, an independent U.S. federal body formed to advise Congress on the Administration of Medicare.)

For the complete article featuring John Barkett in EBN, click here.

For the complete article on the Medicare Advantage ruling, click here.

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