Exciting Changes in Medicare Advantage Program Proposed in Washington D.C.
Washington D.C. is buzzing with news as the Joe Biden administration works to push through some major reforms for the Medicare Advantage (MA) program. As this administration heads into its final months, the stakes are high to improve this popular yet controversial health insurance program that over half of seniors enrolled in Medicare now rely on.
What’s on the Table?
The proposed reforms are vital as they aim to address concerns surrounding the quality of coverage and access associated with MA plans. Unfortunately, recent reports have highlighted issues involving algorithms that contribute to an astonishing number of claim denials, creating barriers for many seniors. In fact, new data from the Centers for Medicare & Medicaid Services (CMS) shows that about 80% of denied claims are ultimately overturned on appeal; however, fewer than 4% of the denied claims actually get appealed in the first place!
Bringing More Accessibility
Medicare Director Meena Seshamani spoke about the proposed changes during a recent call, emphasizing that more patients could access care if there weren’t unnecessary blocks placed by cumbersome prior authorization requirements. With a 2018 government audit revealing that 75% of initially denied requests were later approved upon appeal, it’s clear that more clarity in the system is urgently needed.
Defining the Fine Print
One of the key aspects of the proposed rule is that it aims to limit overly strict utilization management policies that often leave patients in the lurch. It clarifies an MA payment rule established last spring, ensuring all plans must comply with existing Medicare regulations. This effort is to help understand when plans can use their own internal coverage criteria, which would need to be publically detailed on their websites moving forward.
Stronger Regulations and Fairness
Furthermore, the plan wouldn’t allow MA providers to revisit decisions once hospital admissions have been authorized, thereby creating more stability for patients needing care. This updated rule stems from audits the CMS carried out this year, which they intend to continue all the way into 2025 to maintain consistent oversight.
Technology and Equality
On the technology front, the proposed rule instructs MA plans to ensure that every beneficiary receives an equitable level of service, whether the service is provided by a person or an automated system. There are also stipulations to prevent any discriminatory practices based on patients’ health statuses. In the age of AI, this is a huge step toward making health care fair and accessible.
Focusing on Transparency
Additionally, there’s concern about how large MA players, like UnitedHealth, are influencing the market through their ownership of both insurance and medical provider services. The CMS is now requesting information regarding how this vertical integration is affecting medical loss ratios or MLR, which pretty much measures how much of the premium money is actually spent on patient care versus kept for profits or administrative costs.
Marketing Matters
Marketing is also part of the conversation, with the CMS stating that they’ve had to deny over 1,500 ads this year for misleading content! With all these changes, the goal is to ensure prospective MA members get clear and comprehensive information, including possible subsidies available through traditional Medicare.
A Clear Path Forward
One exciting aspect of the proposed reforms is the plan to improve the Medicare Plan Finder website to help seniors compare providers more efficiently. This means plans will need to keep their directories accurate, which can fight against “ghost networks” where the apparent number of doctors available seems greater than reality.
Final Thoughts
Ultimately, these proposals, if successful, could greatly impact plan profits while improving the experience for seniors navigating the MA landscape. With clearer guidelines, better transparency, and equitable care, all eyes are on the decision-makers as the clock ticks down on the Biden administration’s final months in office.
