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CMS finalizes '17 Medicare Advantage plan payments

The Centers for Medicare & Medicaid Services on April 4released the final 2017 payment and policy updates for the Medicare Advantageand Part D Prescription Drug Programs.

On average, the expected revenue change is 0.85% withoutaccounting for the expected growth in coding acuity that has typically addedanother 2.2%.

The final revenue increase is somewhat smaller than theincrease estimated in the February Advance Notice due primarily to technicalupdates in the risk adjustment normalization factor. CMS had announced inFebruary that the net payment impact of the proposed updates would result in amodest increase of 1.35% on average for Medicare Advantage plans.