The Centers for Medicare & Medicaid Services recently published payment policy updates to Medicare Advantage (also known as Medicare Part C) and Medicare Prescription Drug Program (also known as Medicare Part D) for the calendar year 2024. The updates include a payment increase of 3.32% compared to 2023, Star Rating updates, and finalized growth rates for Medicare Advantage, as well as alignment of Medicare Advantage, plans with the Internal Classification of Diseases (ICD)-10 system which has been in place since 2015 for many other payors in the U.S. The updates also include policies addressing Puerto Rico payment rates, prior authorization practices, access to behavioral health services, and marketing of Medicare Advantage plans. Part D updates for 2024 include the elimination of cost-sharing in catastrophic phase coverage, expanding the low-income subsidy program, eliminating deductibles for certain adult vaccines and insulin products, and limiting a month’s supply of covered insulin products to $35 per month. Medicare Advantage has continued to grow faster in rural areas, with enrollment growing 13.4 percent between 2021 and 2022 in rural and 7.9 percent in urban counties.
