Medicare Advantage documents
Credit: designer491/Getty Images Plus

The Centers for Medicare & Medicaid Services is forecasting a nearly 8% increase in revenue for Medicare Advantage plans next year. The agency released its 2023 advance notice earlier this week. 

The agency expects proposed policy changes, including many targeted at improving health equity, will result in a 7.98% revenue increase for Medicare Advantage organizations.

“Our goals for Medicare Advantage mirror our vision for CMS’ programs as a whole, which is to advance health equity; drive comprehensive, person-centered care; and promote affordability and the sustainability of the Medicare program,” CMS Administrator Chiquita Brooks-LaSure said in a statement Wednesday. 

The agency also requested feedback on a potential change to Medicare Advantage and Part D star ratings that would better reflect how well each plan advances health equity. CMS is also seeking comments on including a quality measure in those ratings to specifically assess how often plans screen for common health-related social needs, such as housing insecurity, food insecurity and transportation problems. 

Medicare Advantage enrollment penetration now exceeds 40% of beneficiaries nationally, and in some states, penetration is over 50%, according to Brian Ellsworth, vice president for public policy and payment transformation for Health Dimensions Group. 

Because of this, it will be “increasingly important” for post-acute providers to understand how Medicare Advantage plans are paid and to be able work with the managed care plans to help them improve their risk scores, he said. 

“In return, post-acute providers need adequate payment and minimal administrative hassles so that they can provide quality care and retain their workforce,” Ellsworth told McKnight’s Long-Term Care News Thursday. “The continued increases in Medicare Advantage penetration make forming value-based relationships between post-acute and managed care imperative.”