CMS Officials Expect Significant Increases in Premiums for MA Plans
Premiums for Medicare Advantage plans are expected to increase by an average of 25% in 2010, a senior CMS official said Wednesday, the Wall Street Journal reports.
Timothy Hill, deputy director for the Center for Drug and Health Plan Choice at CMS, said that premiums will increase from about $32 a month to $39 a month.
Insurance companies had indicated that there would be a premium increase because of the federal government's decision to reduce MA payments by 4.5%.
However, Hill said, "It's more than the payment changes." According to Hill, the increase is largely the result of many insurers discontinuing their private fee-for-service MA plans because of a new federal rule that requires plans to establish provider networks.According to an analysis by Avalere Health, the number of MA plans is expected to drop by more than 40% in 2010 to 73,337 (Zhang, Wall Street Journal, 10/15). This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.