CHA News

CMS Finalizes 2020 Payment Changes for Medicare Advantage and Part D Plans

For CFOs, CEOs

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The Centers for Medicare & Medicaid Services (CMS) has finalized its policy and payment updates for Medicare Advantage (MA) and Part D plans for calendar year (CY) 2020. CMS estimates revenue for MA and Part D plans will increase by 2.53 percent for 2020, excluding an average 3.3 percent increase in risk scores.

CMS finalized policies that allow MA plans to offer chronically ill patients a broader range of supplemental benefits that address social determinants of health, such as meals and transportation for non-medical needs like grocery shopping. CMS also finalized policies to help prevent and combat prescription opioid overuse, including encouraging Part D plans to provide lower cost sharing for opioid-reversal agents and advancing Medicare Part D opioid-related measures through the star ratings development process. Additionally, CMS finalized proposed changes to the risk-adjustment model for aged and disabled beneficiaries enrolled in MA Part C plans beginning in CY 2020.