Analyst Offers Prediction About Medicare Advantage PlansThe Associated Press: Analyst Predicts Flat Initial Medicare Rates
Initial 2012 reimbursement rates for Medicare Advantage plans should be roughly flat, which tops the consensus expectation of a 2 percent drop, according to Citi analyst Carl McDonald. McDonald said Tuesday in a research note the rates will be hurt by cuts from the health care overhaul, but he also thinks they will benefit from an adjustment to prior estimates. He noted that the Centers for Medicare and Medicaid Services assumed physician reimbursement rates would drop 20 percent in 2010 and 2011, and that didn't happen (2/9). This is part of the KHN Morning Briefing, a summary of health policy coverage from major news organizations. Sign up for an email subscription.