CMS' risk adjustment changes won't slow down UnitedHealth Group's long-term growth in the program, CEO Andrew Witty told investors.
On an April 14 investor call, transcribed by Seeking Alpha, Mr. Witty said CMS' decision to phase-in its adjustments over three years will allow the company more time to prepare and adapt to the changes in reimbursement rates.
"While we remain concerned about some of the potential unintended consequences of the changes of the risk adjustment model, particularly around adequate diagnosis and support for people with diabetes, complex behavioral needs and more, we do appreciate CMS' decision to phase-in the changes," Mr. Witty said.
CFO John Rex told investors the company expects to add upward of 900,000 new Medicare Advantage members in 2023.
Payers opposed CMS' initial proposed coding adjustments, which industry groups said would amount to a cut in funding for the program.
In its final rate announcement, published March 30, the agency said Medicare Advantage plans will see an average payment increase of 3.32 percent between 2023 and 2024, up from 1.03 percent in the advance notice, because of the three-year phase in of the changes.
Brian Thompson, CEO of UnitedHealthcare, said the three-year phase-in will allow the company to minimize any impacts to beneficiaries.
"I will just say we remain optimistic about MA and the value prop that it has broadly. We certainly feel very good about our market position in it. We intend to grow again in 2024," Mr. Thompson said. "We expect the marketplace to continue to grow in 2024, and we continue to lead with the strong momentum that we have demonstrated for many years now."
UnitedHealth Group posted revenues of $91.9 billion in the first quarter of 2023, up 15 percent from $80.1 billion over the same period last year, according to the company's earningsreport.
The company had 7.5 million Medicare Advantage members at the end of March 2023, up from 6.9 million in March 2022.