|[February 28, 2014]
Best's Briefing: Medicare Advantage Cuts to Drive Adjustments; No Major Exits Expected
OLDWICK, N.J. --(Business Wire)--
The release of the proposed rate reduction to insurers providing
Medicare Advantage coverage seems to be within an acceptable range for
most insurers to maintain their offerings for 2015. Since 2010 with the
passage of The Patient Protection and Affordable Care Act (PPACA),
health insurers have been preparing and adjusting for the gradual
progression of Medicare Advantage reimbursement levels toward parity
with traditional fee-for-service Medicare.
There are a lot of moving parts to the overall profitability of Medicare
Advantage, and margins for this line of business continually are being
challenged. Reimbursement levels and bids for Medicare Advantage change
annually, so each year insurers have to adjst their business strategies
and operations for this line of business. Currently, two changes
carriers are adjusting to are the new requirements of the Star bonus
program, which has raised the bar to four stars for being able to
achieve quality bonus payments, as well as the industry tax on all
premiums as a result of a provision of PPACA.
For the full, complimentary copy of this briefing, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=221962.
A.M. Best Company is the world's oldest and most authoritative
insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2014 by A.M. Best Company, Inc. ALL RIGHTS
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