CMS previews 2017 Medicare Advantage capitation rates

The Centers for Medicare & Medicaid Services yesterday released preliminary estimates underlying Medicare Advantage rates for 2017. According to CMS’s analysis, the Medicare fee-for-service baseline rate will increase by 3.1% in 2017. The FFS baseline measures traditional Medicare spending and is one of the key components CMS uses to calculate the MA monthly capitation rates paid to insurers. In February, CMS will formally issue its preliminary estimate for the MA capitation rates and other policy changes for the MA program when it releases its advance notice of the 2017 MA rates. The MA capitation rates will be finalized in early April.