tci Medicare Compliance & Reimbursement - 2004 Issue 15

Health Plans: Medicare Plans Due For 6.6-Percent Raise in 2005

The good news means more plans may join Medicare Advantage in the future.Under payment rules enacted in last year's prescription-drug law, Medicare private health plans will likely see a 6.6 percent annual reimbursement increase for 2005, up considerably from the 2 percent increases many plans have experienced in recent years. The final number will not be announced until May 10, but the Centers for Medicare & Medicaid Services announced March 26 that it projects an average 6.6 percent per capita growth rate for Medicare Advantage plans next year. Under the new Medicare law, beginning with...

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