The proposals were rolled out early in preparation for the incoming Trump administration, and it remains unclear what changes the incoming office will make to the proposed rule.
According to STAT, the Centers for Medicare and Medicaid Services (CMS) proposed to increase benchmark payments for MA plans by 2.2% for 2026, as opposed to the cuts for 2024 and this year. The Biden White House warned the incoming administration that “pauses” to its changes could result in an excess of $10 billion paid out to the industry.
The expected 4.33% payment increase would translate to $21 billion according to the advanced rate notice, but MA advocates say that individual plans’ offerings will drop by 6.5% next year, the first decline in a decade, Inside Health Policy reports. Public comment is open until February 10, and Better Medicare Alliance has expressed optimism that the Trump administration will strengthen the MA program and elide “coverage disruptions driven by cuts to the program.”
The Biden administration’s 2026 Advance Rate Notice can be reviewed at the CMS website. From CMS Administrator Chiquita Brooks-LaSure:
Today’s Advance Notice continues CMS’ efforts to provide access to affordable, high-quality care in Medicare Advantage while being a good steward of taxpayer dollars. We are also continuing implementation of the Inflation Reduction Act, ensuring people with Medicare Part D have more affordable coverage for their medications.
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