CMS proposes MA, Part D payment and policy changes for 2017

The Centers for Medicare & Medicaid Services late today announced proposed changes to the Medicare Advantage and Part D prescription drug programs for calendar year 2017, which would increase payment rates by a net 1.35%. When combined with expected growth in plan risk scores, CMS anticipates the MA plans and Part D sponsors will see an average revenue increase of 3.55%. Among other notable policy changes, CMS proposes to update the risk-adjustment model to more closely align reimbursement with costs for dually eligible beneficiaries and refine a subset of the Star Ratings program measures to account for beneficiary socioeconomic and disability status. CMS will accept comments on the 2017 Advance Notice and Draft Call Letter through March 4, and expects to publish a final rate announcement and call letter on April 4. “Today’s proposal includes fair and sustainable rates to help ensure patient access to vital health care services, including important supplemental benefits,” said Ashley Thompson, AHA senior vice president of public policy analysis and development. AHA staff are reviewing the proposals, and AHA members will receive a Special Bulletin with further details.