Medicare Advantage bonus payments decline for first time since 2015

Medicare Advantage bonus payments decline for first time since 2015
Becker's Payer Issues; by Rylee Wilson; 9/11/24
Bonus payments to Medicare Advantage plans will decline by around 8% in 2024 compared to 2023, according to a report from KFF. The analysis, published Sept. 11, found bonus payments to MA plans will decline by around $1 billion to $11.8 billion in 2024. Although this was the first decline since 2015, the $11.8 billion in payments will still exceed amounts for every year from 2015 to 2022. The number of bonus payments will decline because of temporary policies in place during the COVID-19 pandemic increased star ratings for some plans, according to KFF. When the policies ended, some plans took a hit in bonus payments. CMS pays Medicare Advantage plans bonus payments for achieving a star rating of four or higher.