This article is from: srnnews.com
Jan 26 (Reuters) – U.S. President Donald Trump’s administration has proposed an average rate increase of just 0.09% in Medicare payments to insurers next year, the Wall Street Journal reported on Monday.
The Centers for Medicare and Medicaid Services is set to announce the proposal on Monday, the report said, adding that the agency will also suggest eliminating a lucrative industry billing practice that has raised concerns with government watchdogs.
The U.S. Department of Health and Human Services, under which CMS operates, did not immediately respond to Reuters’ request for comment.
The proposal aims to improve payment accuracy and ensure Medicare insurers are adequately reimbursed, the report said, citing a Medicare official.
The agency wants to simplify the billing system and strengthen competition, the official added.
Private Medicare plans, known as Medicare Advantage, are a major business for insurers, and federal rate decisions are central to their financial outlook.
According to the WSJ report, the proposed 0.09% increase is worth about $700 million to the industry.
(Reporting by Siddhi Mahatole in Bengaluru; Editing by Leroy Leo)
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