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CMS Finalizes 2024 Medicare Advantage and Part D Payment Rates

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The Centers for Medicare & Medicaid Services (CMS) has finalized the calendar year 2024 payment policies for the Medicare Advantage (MA) and Part D prescription drug programs.     

CMS will delay adjustments that will reduce payments to MA plans. CMS anticipates a payment increase for MA plans of 3.3% from 2023 to 2024. This is approximately a $13.8 billion increase in MA payments for next year. CMS originally proposed a 1% increase. 

CMS finalized revisions to the Part C risk adjustment model to include restructured condition categories. This would be done using the International Classification of Diseases-10 classification system and updated underlying fee-for-service data for 2018 diagnoses and 2019 expenditures. CMS will phase in the revised model over three years.  

Additional details are available in a CMS fact sheet