- 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.
- Health insurers: AET, HNT, HUM, UNH, WLP, MOH.
- ETFs: XLV, XHE, VHT, FXH, IHF, IHI, IYH, PTH, RYH, PSCH, RXL, RXD, XHS.
Government wants to cut Medicare Advantage payments by 3.55%
Feb 23 2014, 04:14 ET