Dive Brief:
- Industry stakeholders are lobbying for the CMS to rescind its proposed rate increases to insurers for specified Medicare Advantage plans for retirees known as Employer Group Waiver Plans, reports Morning Consult.
- The proposed changes, published last month, would reduce payments to the plans by about 3% to 4%, which opponents worry would negatively impact retirees. About 3.3 million seniors are enrolled in these plans.
- The final notice is slated for release in early April.
Dive Insight:
While Medicare Advantage rate change proposals bring annual debate, this year's focus on retiree plans is unique, Morning Consult notes.
Among those fighting the changes are America’s Health Insurance Plans, the Better Medicare Alliance and a coalition of companies that includes Aetna, UnitedHealth Group, Humana, and Express Scripts.
AHIP argued in a letter to CMS the agency's advance notice did not address the impacts of the proposed change, and that it would result in uncertainty for employers and union sponsors that have already determined their healthcare costs for 2017.
However, experts say it's difficult to state an overall impact because the effects on each plan would differ based on their offerings. “There are so many variations. I imagine the impact is going to be very different depending on who you’re talking to,” Morning Consult quoted Jean LeMasurier, senior vice president for public policy at the Gorman Health Group.