How changes in benchmarks impact plan generosity
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Monday, April 17, 2023 | The Latest Research, Commentary, And News From
Health Affairs
Dear John,
Don't miss tomorrow's Professional Development
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event with Liz Jurinka at 4:00 PM ET. We frequently host events for
health policy professionals to network and learn from one another.
Become an Insider
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today to join our growing community of professionals.
Reducing Medicare Advantage Benchmarks
The benchmark rates against which Medicare Advantage (MA) plans bid play
a central role in determining the level of rebates that are passed
through to enrollees.
In their April Health Affairs article, Michael Chernew and coauthors
examine the effects of benchmark changes across markets
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from 2012 to 2019.
The authors estimate that a $1,000 per year decrease in benchmark rates
would yield about a $60 increase in annual premiums and a $27 increase
in annual deductibles, along with modest increases in other forms of
cost sharing.
There have been calls to reduce MA benchmarks in response to concerns
that MA plans are overpaid, yet there is resistance "because MA plans
use a portion of the higher payments to support lower premiums and more
generous coverage."
This research provides important information for policy makers focused
on this challenge. "Understanding what is bought with the added
payments will help policy makers balance fiscal concerns with a desire
to support greater benefits," the authors conclude.
Read More
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Elsewhere At Health Affairs
Today in Forefront, Barry Massa discusses how creating future
improvements in organ donation
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will require greater attention to reducing waste and increasing
diversity, equity, and inclusion.
Read more on Forefront
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and learn more about how you can contribute
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to the publication.
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Abortion Care Is Essential Medical Care
In a new episode of the Narrative Matters podcast, an abortion care
provider shares stories from the front line and urges physicians to
defend abortion care access within their communities. Read by author
Rachel Jensen.
Listen Here
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Daily Digest
Reducing Medicare Advantage Benchmarks Will Decrease Plan Generosity,
But Those Effects Will Likely Be Modest
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Michael E. Chernew et al.
Breaking Records In Organ Donations
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Barry Massa
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mailto:
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About Health Affairs
Health Affairs is the leading peer-reviewed journal
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health care, and policy. Published monthly by Project HOPE, the journal
is available in print and online. Late-breaking content is also found
through healthaffairs.org <healthaffairs.org>, Health Affairs Today
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Update <[link removed]>. Â
Project HOPE <[link removed]> is a global health and
humanitarian relief organization that places power in the hands of local
health care workers to save lives across the globe. Project HOPE has
published Health Affairs since 1981.
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Health Affairs, 1220 19th Street, NW, Suite 800, Washington, DC 20036, United States
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