Proposed 2014 Medicare Advantage Rate Changes

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Here in Florida, we know that major health care changes are rapidly approaching. Sometimes a major change is good and sometimes it can be frustrating, like the recent changes proposed by the Centers for Medicare & Medicaid Services (CMS).

CMS has announced that they plan to implement a 2.3 percent reduction in Medicare Advantage payments for 2014. With the other payment reductions put in place by the Affordable Care Act (ACA) this payment change by CMS could result in benefit reductions and premium increases of an average $50 to $90 per month for a typical Medicare Advantage beneficiary next year, according to an Oliver Wyman report, commissioned by America’s Health Insurance Plans (AHIP).

Essentially, about 28 percent of all Medicare beneficiaries will likely face higher out-of-pocket costs, reduced benefits and fewer health care choices. These higher costs will occur because Medicare providers and insurers may receive lower reimbursements from Medicare.

To put it into perspective, this potential reduction in Medicare Advantage payments for 2014 comes at a time when medical costs are projected to increase by three percent, putting seniors and people with disabilities enrolled in Medicare Advantage – at a serious disadvantage.

The good news is that the CMS changes have not yet been finalized. You can get involved by contacting your senator today by calling 1-877-58-SENIOR (1-877-587-3646) or by visiting and providing your input by March 1, 2013.



This information is for illustrative purposes only and is being provided to help increase understanding of the impacts of some of the provisions of the Affordable Care Act (ACA). It does not attempt to cover all of the law’s provisions and is not intended as tax or legal advice.

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