Healthcare Insurers Respond To New Payment Rate Increases On Medicare 2017 Advantage Plan

  Medicare health insurers express satisfaction with the  first announcement of  the payment rate increases for the new 2017 Medicare Advantage Plan.                  

The larger rates for enrollees mean larger payments for insurers, and is an indicator that payment cuts that had been enforced under the Affordable Care Act, also known as Obamacare, are a thing of the past.

One of the main components used by the federal government to calculate the lump sum payments to Medicare Advantage Plan insurers, the “fee for service” rate, is slated to rise by 3.1% in 2017.

The 2017 Medicare Advantage Plan advance notice of rate hikes, which include all adjustments and policies, will be released on February 19, and after the markets close on April 4, the final rates will go live.

About a third of Medicare 2017 beneficiaries, nearly 18 million people, purchase the Medicare Advantage Plan, and will be affected by the rate increases.