Government wants to cut Medicare Advantage payments by 3.55%

|By:, SA News Editor

The Centers for Medicare & Medicaid Services has proposed cutting 2015 base payment rates for the Medicare Advantage program for senior citizens by 3.55%.

The proposal is subject to negotiations, with a final decision due in April.

"The final cut may be bigger, as the proposed rate doesn't take into account adjustments required by the Affordable Care Act," says Bloomberg Industries analyst Michael Manns.

Last year, the government increased 2014 base payments by 3.3% after initially proposing a 2.2% fall, although actual payments are falling 6.7% due to a new Obamacare tax and sequestration.

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