More Than 100 Organizations Urge CMS to Ensure Stability for Medicare Advantage Beneficiaries in Final Rate Notice
WASHINGTON — A coalition of 110 organizations representing physicians, nurses, health systems, community-based organizations, employer groups, supplemental benefit partners, and beneficiary advocates is urging the Centers for Medicare & Medicaid Services (CMS) to revise key provisions in the proposed CY2027 Medicare Advantage Advance Notice to protect seniors from higher costs, reduced benefits, and continued market instability.
The letter, led by Better Medicare Alliance and sent to CMS Administrator Dr. Mehmet Oz, follows a new analysis by BRG, which found that key provisions in the Advance Notice would significantly reduce payments to Medicare Advantage plans.
“Medicare Advantage is a lifeline for millions of seniors,” said Mary Beth Donahue, president and CEO of Better Medicare Alliance. “When payment rates do not keep pace with rising health care costs, the consequences are real — with higher premiums, scaled-back benefits, and plan exits in communities across the country. After several years of instability, CMS must ensure the Final Rate Notice provides adequate funding to protect affordability and preserve access for seniors.”
Over the past two years, beneficiaries have seen median annual out-of-pocket maximums rise by nearly $900 on average, while plan exits have forced millions of seniors nationwide to change coverage. If finalized without adjustment, the Advance Notice could mean seniors would see further impacts — including higher premiums, increased cost-sharing, reduced supplemental benefits, or fewer plan options when they enroll in coverage this fall.
“Our physician groups rely on Medicare Advantage risk adjustment to support the infrastructure and capabilities they need to manage patients with multiple chronic conditions,” said Susan Dentzer, president and chief executive officer of America’s Physician Groups, whose members care for an estimated one in three Medicare Advantage enrollees. “Resources such as advanced primary care teams, case management, and care coordination help to keep patients healthy and out of emergency rooms and hospitals. If they are diminished under the Advance Notice proposals, our patients’ outcomes will suffer.”
“Medicare Advantage supports healthier aging through supplemental benefits like fitness programs that prevent chronic disease and combat social isolation,” said Katie Adamson, Senior Advisor, Health Partnerships and Policy, YMCA of the USA. “As the largest Medicare Advantage fitness provider, the YMCA calls on policymakers to raise Medicare Advantage rates to prevent health plan withdrawals and ensure providers can sustainably deliver this vital service.”
“In Nevada, Medicare Advantage connects seniors with chronic conditions to coordinated care teams and community-based supports that help them stay stable and independent,” said Tom McCoy, Executive Director of the Nevada Chronic Care Collaborative. “When that infrastructure is strained, the effects are felt across care networks and families. We urge CMS to ensure the Final Notice provides sufficient funding to sustain these care models and protect Nevada’s seniors.”
The coalition urges CMS to revise rate levels in the CY2027 Final Rate Notice to account for rising utilization and care costs, exercise a cautious and collaborative approach to policy changes, and prioritize beneficiary access and affordability.
The organizations remain committed to working with CMS to strengthen Medicare Advantage and protect the seniors and families who rely on it.
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Better Medicare Alliance is a community of hundreds of thousands of grassroots beneficiaries and 200+ ally organizations working to improve health care through a strong Medicare Advantage. Learn more at bettermedicarealliance.org.