News: CMS releases advances notice for MA plan payments, Part D redesign
CMS has proposed a 4.3% payment increase to Medicare Advantage (MA) plans for the calendar year (CY) 2026, according to an American Hospital Association (AHA) press release.
According to a CMS fact sheet, the 4.3% payment increase to MA plans amounts to approximately $21 billion. The federal government is expected to spend $9.2 trillion over the next decade on MA plans, $1.3 trillion of which will be used for MA supplemental benefits and premium buy-downs.
“The Advance Notice continues a data-driven approach that ensures MA payment is accurate, drives competition, and supports accountable care, shifting the focus to managing care and improving outcomes,” said CMS Deputy Administrator and Director of the Center for Medicare Meena Seshamani, MD, Ph.D.
The United States government is also simultaneously releasing the draft CY 2026 “Part D Redesign Program Instructions” that continues to implement the redesign of the Medicare Part D program.
According to CMS, the CY 2026 advance notice and draft CY 2026 Part D Redesign Program Instructions are open for public comment, and CMS will accept comments through 11:59 p.m. Eastern on February 10, 2025. The CY 2026 rate announcement and the CY 2026 Part D Redesign Program Instructions will be published no later than April 7, 2025.
Editor’s note: To read the AHA press release, click here. To read the CMS fact sheet, click here.