CMS' proposed Medicare Advantage rates for 2026 are moving in the right direction, but still "insufficient" to cover rising costs in the program, according to Elevance Health executives.
On a Jan. 23 earnings call, Felicia Norwood, executive vice president of government health benefits at Elevance Health, said the company is "very pleased" to see rates trending upwards after two years of cuts.
"While the base rate reflects progress, I think, towards more adequate funding in the program, we still believe that it's insufficient in light of the cost trends that we've seen over the past year," Ms. Norwood said.
CMS published its proposed Medicare Advantage rates for 2026 on Jan. 10. The agency pitched a $21 billion boost in funding for the program overall, an increase of 4.33% from 2025. The proposed rate is higher than the 3.7% increase CMS estimates plans will get in 2025.
The rates, proposed by the outgoing Biden administration, will be finalized in April. The Trump administration will have final say over the rates.
Ms. Norwood said Elevance will be in touch with the administration to recommend changes, including changes to the Part D risk model.
"We look forward to working with the administration over the next few weeks and months to make sure that the final notice advances the program that seniors in this country certainly have come to rely on," she said.
Elevance Health reported its fourth-quarter and full year earnings Jan. 23. The company expects to grow its MA membership between 7% and 9% in 2025, CEO Gail Boudreaux told investors, driven by growth during the open enrollment period and new group Medicare Advantage customers.