The U.S. government on Monday said it would increase by 2.53% on average 2020 payments to the health insurers that manage Medicare Advantage insurance plans for seniors and the disabled, a reflection of a new estimate on medical cost growth.
The rate, which affects how much insurers charge for monthly healthcare premiums, plan benefits and, ultimately, how much they profit, represents an increase over the 1.59% increase proposed by the Centers for Medicare & Medicaid Services (CMS) in February.
The government raised the final payment rate from the proposed rate after revising its estimate for increases in medical services for next year. Its final estimate of that growth rate is 5.62% compared with 4.59% in its February proposal.