WASHINGTON, D.C. – (February 17, 2023) – AHIP President and CEO Matt Eyles released this statement today in response to comments by HHS Secretary Xavier Becerra on Medicare Advantage.
“We respectfully disagree with the Secretary’s recent statements about the impact of the Administration’s proposed 2024 Advance Rate Notice for Medicare Advantage (MA). It will have real-world consequences in 2024 for the more than 30 million seniors and people with disabilities who choose MA—they will face increased costs and reduced benefits.
“MA delivers lower costs, more choices, and better coverage and care than original Medicare, and it should be protected for the millions of Americans who depend on MA for their health and financial well-being.
“The Administration has stressed that protecting Medicare is a key priority. We agree, and so do the 30 million seniors who count on MA. That’s why we look forward to having meaningful conversations with the Administration about the impact of the Advance Rate Notice on seniors and people with disabilities to ensure they continue to receive the high-quality, affordable coverage and care they expect through their Medicare Advantage plans.”
Altogether, the Administration estimates that three changes in the Advance Notice would, on average, cut average MA rates in 2024 by 2.27%, with varying impacts across the country. Here’s how:
- Reduce payments by 3.12% in 2024 through changes to the MA risk model that accounts for the health status and demographic characteristics of enrollees.
- Lower quality bonus payments by 1.24% in 2024 under the Medicare Star Ratings program.
- Increase benchmarks, used to set maximum payment rates, on average by 2.09% in 2024 - less than half the growth rate in 2023 (4.88%) and well below the projected growth in per enrollee Medicare costs (5%).
About AHIP
AHIP is the national association whose members provide health care coverage, services, and solutions to hundreds of millions of Americans every day. We are committed to market-based solutions and public-private partnerships that make health care better and coverage more affordable and accessible for everyone. Visit www.ahip.org to learn how working together, we are Guiding Greater Health.