CMS Changes Gear to Raise, Not Lower, 2014 Medicare Advantage Rates

Doubling back on its push to cut Medicare Advantage payments, CMS announced it would instead increase its rates to Medicare Advantage plans by 3.3 percent next year rather than the 2.3 percent slash it had originally planned.

One in four Medicare beneficiaries pay more to be on Medicare Advantage, which pays a flat rate to the private insurers who administer the plans in an effort to promote cost-efficiency and preventive care. Beneficiaries' out-of-pocket expenses are capped, unlike traditional fee-for-service Medicare.

Health insurance lobbying group America's Health Insurance Plans aired an arsenal of advertisements during the public comment window claiming seniors feared health costs would rise beyond what they could afford.

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