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CMS issues CY 2014 rate announcement for MA plans

April 2, 2013

The Centers for Medicare & Medicaid Services yesterday issued a rate announcement and final call letter for Medicare Advantage health plans and prescription drug plans in calendar year 2014 that would increase MA payments by 3.3%. CMS had proposed a 2.3% cut in February but changed its estimate to incorporate an assumption that Congress will act to prevent the scheduled 25% reduction in Medicare physician payment rates in 2014, CMS said. The guidance also contains revisions to payment methodologies and other policy and operational process updates for MA plan sponsors.