CMS has released its 2018 Advance Notice and Call Letter, which outline proposed updates to Medicare Advantage (MA) and Part D plan reimbursement methodologies and policies. CMS notes that it its proposed policies focus on four major outcomes: (1) improvement in quality of care for individuals, (2) promotion of alternative payment models, (3) program integrity and beneficiary/tax-payer value, and (4) improvement in beneficiary experience. According to a CMS fact sheet, the update would increase MA plan payments by 0.25 percent on average, but revenue would increase by 2.75 percent on average considering coding trends. CMS proposes various MA Star Ratings program updates, MA cost sharing changes, revisions to the Part D risk adjustment model, and provisions intended to reduce unsafe opioid overutilization, among other policies. CMS will accept comments on the proposed Advance Notice and Draft Call Letter until March 3, 2017. CMS anticipates releasing the 2018 Final Rate Announcement and Call Letter on April 3, 2017.
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