From Health Affairs Today <[email protected]>
Subject What Happens If MA Payment Rates Are Reduced?
Date March 22, 2023 8:05 PM
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New article released ahead of print today
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Wednesday, March 22, 2023 | The Latest Research, Commentary, And News
From Health Affairs

Dear John,

Did you know that you can watch previously recorded Policy Spotlight
events and briefings all in one place? Subscribe to our YouTube channel
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more.

Ahead Of Print

There have been calls to reduce Medicare Advantage (MA) benchmarks in
response to concerns that MA plans are overpaid.

Benchmarks are the maximum payments set by the Centers for Medicare and
Medicaid Services that MA plans bid against to set premiums and fund
extra benefits.

A new study released ahead of print
<[link removed]>
by Health Affairs seeks to answer a question lost in the current debate:
What specific benefits would be lost if MA payment rates were reduced?

Michael Chernew and coauthors use variation in benchmark changes across
markets from 2012 to 2019 to assess the relationship between Medicare
Advantage benchmarks, plan generosity, and benefits.

According to the authors' analysis, a decrease of $1,000 per year in
benchmarks would result in a $60 per year premium increase per
beneficiary, small copay increases, and increases of about $27 in annual
deductibles

Further, Chernew and coauthors estimate that higher benchmarks also
would lead to reductions in cost sharing.

"Overall, these results generally suggest only modest effects of
reductions in MA benchmarks on benefit availability," they conclude.

Read More
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Elsewhere At Health Affairs

Today in Forefront, Ken Terry discusses how our national culture of
individualism, independence, and consumerism
<[link removed]>
is at the core of our health care dilemma.

Gregory Curfman and Nicole Huberfeld examine the constitutionality of
graphic warning labels on tobacco products
<[link removed]>
and how these labels can affect public health.

Yesterday we were joined by Mariana Socal on A Health Podyssey to
discuss the global supply chain for generic drugs
<[link removed]>.

If you're enjoying the free articles published on Forefront, bookmark
the website <[link removed]> to never miss an
update.

Daily Digest

Reducing Medicare Advantage Benchmarks Will Decrease Plan Generosity,
But Those Effects Will Likely Be Modest
<[link removed]>

Michael Chernew et al.

We Have Met The Enemy, And He Is Us: Greed And Other Health Care Ills
<[link removed]>

Ken Terry

Public Health Messages And The First Amendment: Graphic Warning Labels
Struck Down
<[link removed]>

Gregory D. Curfman and Nicole Huberfeld

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