Rate Notice Crash Course

Medicare Advantage payment and policy changes are typically made through the Annual Rate Notice and Call Letter, issued by the Centers for Medicare & Medicaid Services (CMS). For Contract Year 2021, CMS will be releasing the Advance Notice of Methodological Changes and Draft Call Letter in two parts and will finalize these proposed changes in April as part of the Final Rate Notice and Call Letter. As of January 6th, Part I of the 2021 Advance Notice of Methodological Changes has been released and comments are due by March 6, 2020. Part II of the Advance Notice is expected to be released at the beginning of February with a 30-day comment period. Through this annual rate setting process, CMS may change any or every element of Medicare Advantage payment rates, including changes to the risk adjustment model, Star Ratings system, and other factors that significantly influence payment rates. Below, BMA has provided resources to catch up on key policies of Medicare Advantage and to better understand the any proposed changes.

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