US to increase Medicare Advantage payments to insurers in 2020 News
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US to increase Medicare Advantage payments to insurers in 2020

The Centers for Medicare & Medicaid Services (CMS) announced Monday that the US government will increase by 2.53 percent on average 2020 payments to health insurers that manage Medicare Advantage insurance plans for seniors and chronically ill beneficiaries.

The changes reflect an increase cost in medical care and align with the Trump administration’s efforts to increase competition among Medicare Advantage and Part D plans to provide higher quality care at lower costs. Under the new scheme, seniors will have the opportunity to choose a plan with greater supplementary benefits, which are benefits for daily maintenance of health. Medicare Advantage insurers can offer supplementary benefits “that are not covered under Medicare Parts A or B, if they diagnose, compensate for physical impairments, diminish the impact of injuries or health conditions, and/or reduce avoidable emergency room utilization.”

Additionally, chronically ill patients will be afforded the opportunity to access “a broader range of supplemental benefits that are not necessarily health-related but have a reasonable expectation of improving or maintaining the health or overall function of the enrollees.” Examples of those benefits include, “meal delivery in more circumstances, transportation for non-medical needs like grocery shopping, and home environment services in order to improve their health or overall function as it relates to their chronic illness.”

CMS also said the new plan seeks to combat the opioid crisis through encouraging “cost sharing reductions for patients with chronic pain or undergoing addiction treatment” and “Part D plans to provide at least one opioid-reversal agent on a lower cost-sharing tier.”