Obama Administration Retreats On Private Medicare Rate Cuts

Kaiser Health News staff writer Jay Hancock reports: "Under intense, bipartisan political pressure, the Obama administration backed down for the second year in a row on proposed payment cuts for insurance companies that offer private plans to Medicare members. After estimating in February that the cuts required by the Affordable Care Act as well as other adjustments would reduce would reduce what it pays insurers next year by 1.9 percent per beneficiary, the Department of Health and Human Services said Monday it would instead give Medicare Advantage plans a raise of 0.4 percent" (Hancock, 4/8). Read the story.

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