Medicare

Medicare Advantage capitation rates in 2005 expected to rise 6.6%

Published in Hospital Law Weekly, April 22nd, 2004

The Centers for Medicare & Medicaid Services (CMS) said Medicare Advantage (formerly Medicare+Choice) capitation rates in 2005 are expected to increase 6.6% in accordance with new rate formulas outlined in the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

The announcement, made March 26, 2004, also included CMS' preliminary estimates of the national growth rate used for determining the national per capita Medicare Advantage growth percentage.

"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, PhD,...

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Source: Hospital Law Weekly (2004-04-22)

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