ERIC Expresses Concern over Proposed Changes to Medicare Advantage Capitation Rates

ERIC, along with several other business trade organizations, on March 6 wrote to Centers for Medicare & Medicaid Services Administrator Marilyn Tavenner expressing concern with the Advance Notice of Methodological Changes for Calendar Year 2015 for Medicare Advantage (MA) Capitation Rates that proposes to lower the MA payment rate by more than four percent. 

The letter explains that employers view MA as a “critical component for employees transitioning to retirement and believe continual reductions in funding are jeopardizing the stability of the program.”  The group letter further explains that these cuts to MA will increase premiums for participants and increase costs to employers, noting that for employers, such changes put additional burdens on retiree health programs and would reduce the options available for retirees.

The group urges CMS to eliminate the proposed cuts, providing flat funding for 2014 to 2015. 

The advance notice was issued on February 21, and the final Announcement of Calendar Year (CY) 2015 Medicare Advantage Capitation Rates and Medicare Advantage and Part D Payment Policies will be released on April 7.  

Group Letter to CMS 

CMS Advance Notice