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Trump administration finalizes better-than-feared Medicare Advantage payment rate in boost to health insurers

Centers for Medicare & Medicaid Services (CMS)

CMS Finalizes 2027 Medicare Advantage and Part D Payment Policies that Strengthen Accountability and Long-Term Sustainability

2027 Medicare Advantage and Part D Rate Announcement

American Hospital Association

CMS finalizes Medicare Advantage rates for CY 2027

Newsweek

Medicare Payments to Rise Under New Policy

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CMS' Medicare Advantage Final Rule Raises Stakes for Payers, Providers

Fierce Healthcare

Cms Gives Medicare Advantage Rates 248 Bump 2027 Plan Year Final Rule

Reuters

Health Insurers Rise After Us Lifts 2027 Medicare Advantage Payment Rates 2026 04 07

Market Watch

Health Insurers Secured A Better Medicare Advantage Rate For 2027 And Their Stocks Are Soaring 1Ca57D12

Benzinga

Trump Administration Finalizes 2.48% Medicare Advantage Payment Hike For 2027, Sending Insurer Stocks Sur

Medicare Beneficiaries to See Simpler and More Flexible Plan Choices, Better Drug Coverage, Higher Quality and Lower Costs in 2027

American Medical Group Association (AMGA)

AMGA Statement on CY 2027 Medicare Advantage Rate Notice

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The reconciliation bill "would reduce federal Medicaid spending by $1 trillion and increase the number of uninsured people by 11.8 million."

"The administration's proposal seeks to cut $610 billion from Medicaid funding for states over the next decade."

The current administration has "passed budget resolutions that would allow massive funding cuts to the Medicaid program."

"The budget passed by House Republicans today steals $880 billion from Medicaid to give tax breaks to billionaires and big corporations."

"Republicans in Congress are rushing to pass a bill that would cut federal funding for Medicaid and weaken the Affordable Care Act."

Will Congress Successfully Cut Medicaid Spending?

The Centers for Medicare & Medicaid Services finalized a net average payment increase of 2.48% for Medicare Advantage plans in 2027, amounting to more than $13 billion in additional funding compared to 2026.

The Centers for Medicare & Medicaid Services finalized a net average payment increase of 2.48% for Medicare Advantage plans in 2027, amounting to more than $13 billion in additional funding compared to 2026.

The finalized rate is significantly higher than the 0.09% increase CMS proposed in January, which had sent insurer stocks sharply lower and drawn widespread industry criticism over inadequate funding.

The finalized rate is significantly higher than the 0.09% increase CMS proposed in January, which had sent insurer stocks sharply lower and drawn widespread industry criticism over inadequate funding.

The main driver of the higher final rate was CMS's decision to delay proposed updates to the risk adjustment model, instead continuing to use the 2024 MA risk adjustment model calibrated with 2018 diagnoses and 2019 expenditures data.

The main driver of the higher final rate was CMS's decision to delay proposed updates to the risk adjustment model, instead continuing to use the 2024 MA risk adjustment model calibrated with 2018 diagnoses and 2019 expenditures data.

Shares of major health insurers rose sharply after the announcement, with UnitedHealth gaining around 8%, Humana around 8% and CVS Health around 6% at market open on Tuesday, according to reports.

Shares of major health insurers rose sharply after the announcement, with UnitedHealth gaining around 8%, Humana around 8% and CVS Health around 6% at market open on Tuesday, according to reports.

CMS Administrator Mehmet Oz said the updates "keep coverage affordable and ensure patients get real value from their plans," while provider group AMGA said the increase "does not reflect the economic realities" its members face.

CMS Administrator Mehmet Oz said the updates "keep coverage affordable and ensure patients get real value from their plans," while provider group AMGA said the increase "does not reflect the economic realities" its members face.

Alongside the rate increase, CMS finalized changes to the Star Ratings system, removing 11 largely administrative measures and placing greater weight on clinical outcomes, patient experience and measures such as depression screening.

Alongside the rate increase, CMS finalized changes to the Star Ratings system, removing 11 largely administrative measures and placing greater weight on clinical outcomes, patient experience and measures such as depression screening.

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CMS Boosts Medicare Advantage Pay 2.48% for 2027

CMS Boosts Medicare Advantage Pay 2.48% for 2027

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CMS Boosts Medicare Advantage Pay 2.48% for 2027

CMS Boosts Medicare Advantage Pay 2.48% for 2027

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