The U.S. government on January 10, 2025, proposed a 2.2% increase in reimbursement rates for Medicare Advantage plans for 2026. This marks a significant reversal from the 0.2% decline seen in the previous year.
When factoring in a 2.1% 'risk score' adjustment, the total increase in payments is estimated at 4.3%, or over $21 billion. This favorable adjustment directly impacts how much insurers like UnitedHealth can profit from their Medicare Advantage offerings.
This proposed rate is considered highly favorable given the contentious political environment and is expected to be very positive for health insurers. It provides much-needed relief and stability for a critical segment of UnitedHealth's business.
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