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On January 16,, 2004, the Centers for Medicare & Medicaid Services (CMS) announced significant increases in federal payment rates for Medicare Advantage health plans, aimed at supporting improvements in services and lower costs for Medicare beneficiaries enrolled in private health plans, as well as more options for Medicare coverage.
The increased payments to Medicare Advantage, formerly known as Medicare+Choice, will take effect March 1. The increases will average 10.6 percent across plans.
Managed care organizations are required to use the funds to:
- Reduce beneficiary premiums or co-pays
- Enhance benefits
- Stabilize or expand the network of doctors and other health care providers available to seniors
- Reserve funds to offset either premium increases or reduced benefits in the future.
For more information, go to cms.hhs.gov/media/press/release.asp?Counter=944
January 2004
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