The Centers for Medicare & Medicaid Services said Monday it expects its payments to Medicare Advantage plan issuers to increase an average of 0.45% over 2017 levels in 2018.
CMS put that figure in its final call letter announcement for 2018.
The expected change in the per-enrollee payment is up from an increase of 0.25% included in a draft program proposal for 2018 posted in February, according to a 2018 call letter summary sheet.
(Related on ThinkAdvisor: 10 counties where Medicare Advantage looks like a wimp)
CMS assumes that typical 2018 enrollees will be somewhat older and sicker than 2017 enrollees, giving those enrollees higher average diagnostic intensity codes. The combination of the underlying payment level increase and the increasing intensity in diagnostic codes should increase overall 2018 per-enrollee revenue an average of 2.95%, CMS said.
That’s up from an overall increase of 2.75% in the draft proposal.
The Medicare Part C Medicare Advantage program gives insurers the ability to sell plans that serve as an alternative to traditional Medicare A hospitalization coverage and Medicare Part B physician and outpatient services coverage.
Another program included in the final call letter announcement, the Medicare Part D prescription drug program, gives insurers the ability to sell prescription drug coverage to Medicare enrollees.