Medicare Advantage plans could see payment reductions of 1.9 percent next year under proposed rates announced by the Centers for Medicare & Medicaid Services. CMS said its preliminary estimate is "the combined effect of the Medicare Advantage growth percentage and the fee-for-service growth percentage."
Insurers, who are against payment reductions, have said the combination of the health law’s lower payment rates, new fees on health plans and other factors, including automatic federal spending cuts known as "sequestration," mean that Medicare Advantage plans will see their Medicare payment rates drop by 6 percent – or even more -- in 2015. In a statement, America's Health Insurance Plans President and CEO Karen Ignagni said, "The new proposed Medicare Advantage cuts would cause seniors in the program to lose benefits and choices on which they depend."