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Capitation rates for Medicare Advantage may rise 6.6% in 2005

Physician Practice Advisor, March 30, 2004

The Centers for Medicare & Medicaid Services (CMS) announced on Friday that the Medicare Prescription Drug, Improvement and Modernization Act (MMA) would bring an expected 6.6% increase in capitation rates for Medicare Advantage patients.

 

"Health plans are already using the increases from the new Medicare law to expand benefits and reduce premiums for their beneficiaries," said CMS Administrator Mark B. McClellan in a statement. "We expect that more health plans will use the 2005 increase to further expand services and improve benefits."

 

The CMS estimate is based on details from the MMA requirements and may be changed before the announcement of final 2005 capitation rates on May 10. Visit http://www.cms.hhs.gov/media/press/release.asp?Counter=992 for more information.

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