CMS Finalizes 2021 Rate Increases for Medicare Advantage

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APRIL 07, 2020 — The Facilities for Medicare and Medicaid Providers (CMS) announced Tuesday that it will raise per-capita payments to Medicare Advantage (MA) options by 1.sixty six% in 2021. That is a slight bump up from the .ninety three% that CMS proposed in February, but a decline from the 2.fifty three% increase that MA options received this yr.

The 2021 payments to the non-public options, which go over about a third of Medicare beneficiaries, do not replicate the government’s endeavours to beat the COVID-19 pandemic, a CMS fact sheet said.

CMS is transitioning its Medicare Advantage payments to a new possibility-adjustment design required by the 21st Century Cures Act. In accordance to the fact sheet, seventy five% of the possibility score in 2021 will be based on the 2020 CMS-Hierarchical Problem Classes (HCC) design, and twenty five% of the score will be calculated using the 2017 CMS-HCC design. In 2020, the possibility-adjustment methodology was evenly divided concerning the two solutions.

To determine payments to every single MA strategy, CMS calculates possibility scores using diagnoses submitted by MA organizations and from Medicare Payment-for-Service statements. Traditionally, CMS made use of diagnoses that MA options submitted to its Risk Adjustment Processing Procedure to possibility-adjust every single plan’s affected person inhabitants. Five a long time ago, CMS began to variable in encounter-based possibility scores so that Medicare payments would far more properly replicate scenario-mix severity.

Studies have shown that MA options are likely to upcode diagnoses to make it seem that their associates are sicker than they actually are. As a outcome, Medicare has overpaid these options. The new possibility-adjustment design aims to suitable that by relying on encounter facts in addition to strategy stories.

CMS is providing MA options one crack, nonetheless. In 2021, it will adjust the MA coding pattern by only five.9%, which is the least the law requires. The adjustment reflects the variation in analysis coding concerning MA organizations and fee-for-assistance companies.

Because of the COVID-19 disaster, the fact sheet mentioned, CMS has adopted quite a few changes to the 2021 Star Rankings for Element C (Medicare Advantage) and Element D (prescription drug) options that will suspend top quality-reporting requirements and reuse previously facts from the 2020 Star Rankings.


The COVID-19 Public Well being Crisis Interim Closing Rule “establishes how we will assign Star Rankings for 2021 in the celebration that the virus helps prevent CMS from owning validated facts or effects in systemic facts integrity troubles, or if CMS’s features develop into centered on only continued performance of critical Agency features thanks to the Pandemic.”

CMS also set up separate charges of payment for MA strategy associates with stop-stage renal condition (ESRD). The last maximize in the ESRD payment fee will be four.04%, a raise from the proposed fee hike of two.eight%.

Below the 21st Century Cures Act, all Medicare-suitable clients with ESRD will be in a position to enroll in MA options starting January 1, 2021. Organ acquisition prices for kidney transplants for MA beneficiaries will be covered beneath the Medicare Payment-for-Service plan, CMS mentioned.

Medscape Professional medical Information

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