Affordable Senior Housing News 2026Apr9

CMS Finalizes 2.48% Rate Increase for MA Plans in CY2027

In related news, CMS announced its final rate notice for Medicare Advantage plans in CY2027 late in the day on April 6. It proposed a 0.09% rate (essentially flat) but finalized a net average rate increase of ​2.48%. It appears that the main reason for the upward adjustment was CMS’s policy decision to not update the MA risk adjustment model for CY2027 and will continue using the 2024 MA risk adjustment model. The final rate notice also finalizes CMS proposals that begin to address what is often referred to as “upcoding” by the MA plans, which drives up payments to the plans, resulting in the Medicare Trust Fund paying plans more for a beneficiary than would have been paid by Medicare FFS. CMS is also finalizing its proposal to accelerate the transition of PACE organizations to the MA risk adjustment model. The fact sheet can be found here.

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