04.03.2024 Health
Arnold Ventures Applauds CMS’ Efforts to Rein in Medicare Advantage Costs, Notes 2025 Medicare Rates Include $16 Billion Increase in Plan Payments
Statement from Mark E. Miller, executive vice president of health care at Arnold Ventures after the Centers for Medicare & Medicaid Services (CMS) released finalized payment updates for Medicare Advantage (MA) and Part D.
Washington, D.C. (Apr. 3, 2024)–“We are pleased that CMS did not give in to special interests and are continuing efforts to rein in the egregious billing practices insurance companies profit from, often at the expense of seniors, those with disabilities, and taxpayers. This includes the implementation of risk adjustment changes as planned.
It’s important to remember that annual overpayments to MA insurers cost billions of dollars each year, about $50 billion from coding alone. This final rate notice also increases payments to insurers by 3.7% or $16 billion. The long-term sustainability of Medicare continues to be under threat as the cost to taxpayers and enrollees continues to rise.
Reining in waste and abuse is not a benefit cut. Despite scare tactics from insurers, there is still considerable room for them to reduce costs while earning significant profits and maintaining current benefits for Americans.
We recognize the policymakers and leaders who have continued to push for meaningful reforms within MA, and we look forward to continuing to work with the administration and Congress on the larger reforms needed to protect and strengthen Medicare’s fiscal sustainability and ensure MA plans deliver value to seniors and taxpayers.”
Arnold Ventures is a philanthropy dedicated to tackling some of the most pressing problems in the United States. It is a team of more than 120 subject-matter experts headquartered in Houston with offices in New York and Washington, D.C. It works in five key issue areas: Criminal Justice, Education, Health, Infrastructure, and Public Finance. Its work is guided by Evidence-Based Policy, Research, and Advocacy.
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