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CMS is proposing a nearly 8% revenue increase for Medicare Advantage plans next year, according to a proposed payment plan released Wednesday. The overall rate increase for 2023 includes a 4.75% effective growth rate and a 3.5% average increase in risk scores. The risk-adjusted benchmark trend, which analysts peg as the key number, comes out to 4.48% for 2023.
Cowen analysts said in a note Thursday the rate increase “should support another year of benefit enhancements & strong enrollment growth,” and noted that in recent years the final rate has been higher than what was first proposed.