The U.S. authorities Wednesday proposed an average 0.93% rise in its payments in 2021 to the health insurers that handle Medicare Advantage insurance plans for about 22 million individuals aged 65 or older or disabled.
The federal government will finalize the rate in April.
UnitedHealth Group, Centene, Humana, Anthem, and CVS Health are among the many largest players in the Medicare Advantage market, wherein private insurers are paid a set rate by the federal government to manage member healthcare.
The government payment rates have an effect on how much insurers cost for month-to-month premiums, plan benefits, and, ultimately, how much profit they make. Medicare Benefit covers about one-third of the individuals enrolled in the government’s Medicare program.
The Centers for Medicare and Medicaid Services, a branch of the U.S. Department of Health and Human Resources, launched the proposed rate early each year and then opens a public comment interval. The final rate adopted in April could be higher or lower than the recommended one.
Evercore ISI analyst Michael Newshel stated in a research note ahead of the report that he was anticipating about a 2.5% rise, consistent with the 2.53% increase the federal government put in place for 2020 packages.
The federal government proposed payment rates for advanced kidney treatments.