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Home Healthcare Reform Health Care Reform Medicare Advantage Cuts Targeted To Fund Health Reform

Medicare Advantage Cuts Targeted To Fund Health Reform

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A $634 billion reserve fund for health care included in President Obama’s fiscal year 2010 budget would be funded largely by slashing Medicare Advantage (MA) rates paid to health plans. A $634 billion reserve fund for health care included in President Obama’s fiscal year 2010 budget would be funded largely by slashing Medicare Advantage (MA) rates paid to health plans.

The proposal calls for a two-year phasedown – in 2011 and 2012 – of rates paid to MA carriers to reach 100% of traditional Medicare fee-for-service (FFS). For health plans, that would translate to an average $46.07 reduction per member per month in 2011 and $92.39 in 2012. The following year, MA carriers would participate in a competitive-bidding process. The strategy of reducing the benchmarks first, Gorman predicts, will lead to “some very competitive bidding” among carriers for 2013.

Under the competitive-bidding process, MA rates could wind up being less than 100% of Medicare FFS. The administration estimates that the proposed changes will translate to $175 billion in savings over the next 10 years.
 

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  May/June 2012
Change Is Ahead
To "Un-Silo" Healthcare

  MedPAC Report’s – Rebasing,
   Co-Pays, Reductions For Home
   Health
   Plus … Report’s Impact To All
   Providers
Innovative Care Models To Align Health Care Reform

Reducing Readmissions How 3 Hospitals Achieved Their Goals

Palliative & End-Of Life Measures

Scorecard Highlights Where Health Systems And Providers
Fall Short

CMS Seeks Input On Quality Measures For EHRs

Nutritional Support In Treating Pressure Ulcers

Initiative To Reduce Avoidable Hospitalizations Among Nursing Facilities

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