Insurers selling Medicare Advantage plans are ready for larger pay increases for 2017. This is a initial signal stark cuts on payments for the Affordable Care Act are almost over regarding the industry. A key metric for 2017 was released by CMS showing the Medicare fee for service base rate which is a measure of the traditional Medicare spending is going to increase by 3.1% in the year 2017. Back in December for 2016 rates, the CMS nailed the growth number at 2.02%.
The formula is a mix of complex estimations and modifications for Medicare Advantage payment. This rate will fluctuate as actuaries receive and analyze additional Medicare spending data. The advance sign of the 2017 Medicare Advantage rates, including all the policies as well as their adjustments, will be released February, 19; final rates will be live after the markets close on April 4.