From Health Affairs Sunday Update <[email protected]>
Subject Ahead of Print: Reducing Medicare Advantage Benchmarks Will Decrease Plan Generosity
Date March 26, 2023 2:05 PM
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Sunday, March 26, 2023 | The Latest Research, Commentary, And News From
Health Affairs

Dear John,

If you enjoy the research we publish at Health Affairs, check out our
YouTube channel
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to watch previously recorded policy briefings featuring authors from our
recent issues.

Ahead Of Print

How would reducing Medicare Advantage (MA) plan benchmarks impact
consumers?

A new study released ahead of print
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earlier this week seeks to answer this question amidst growing concerns
that MA plans are overpaid, prompting some proposals to make cuts to the
program.

Opponents of such cuts have argued that they would reduce the
availability of benefits overall, especially to disadvantaged
populations.

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.

Read More
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