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Medicare Advantage Premiums Expected to Be Mostly Unchanged in 2016

AJMC staff
As enrollment in Medicare Advantage is expected to increase to a new all-time high for the sixth year in a row, CMS announced that Medicare Advantage premiums will remain stable in 2016.
As enrollment in Medicare Advantage (MA) is expected to increase to a new all-time high for the sixth year in a row, CMS announced that MA premiums will remain stable in 2016.

According to new information from CMS, the average MA premium will decrease from $32.91 in 2015 to $32.60 in 2016. Overall, 59% of enrollees will face no premium increase at all.

“Seniors and people with disabilities continue to experience stable premiums in Medicare health and drug plans while benefiting from a transparent and competitive marketplace,” Sean Cavanaugh, CMS deputy administrator and director of the Center for Medicare, said in a statement. “Medicare Advantage and prescription drug plans remain affordable and provide high quality care.”

Since the passage of the Affordable Care Act in 2010, MA premiums are expected to have decreased nearly 10% while enrollment increases by more than 50%. At approximately 17.4 million enrollees, MA represents one-third of the Medicare population.

Nearly two-thirds of MA enrollees are in plans with at least 4 stars for 2016, an indication that beneficiaries are receiving higher quality care—in 2009 just 17% of enrollees were in plans with 4 or more stars.

 
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