HHS Secretary Xavier Becerra told the Senate Finance Committee that proposed Medicare Advantage rate changes will not lead to cuts in benefits.
At a March 22 hearing on the agency's 2024 budget, senators from both sides of the aisle questioned Mr. Becerra on the impact of the rate changes proposed in the advance notice for Medicare Advantage beneficiaries.
Sen. Mike Crapo, an Idaho Republican and ranking member on the finance committee, asked HHS to conduct an impact analysis on how the proposed model would affect different beneficiaries.
"We've heard concerns from providers, patients and plans that these changes will disproportionately impact the most vulnerable MA beneficiaries, including those with low incomes or chronic conditions," Mr. Crapo said.
Groups representing payers, and some provider groups, have urged the agency not to move ahead with the guidance.
Payers have said the rate adjustments amount to a cut in funding for the program that will force plans to raise premiums or cut benefits.
HHS is evaluating the over 15,000 public comments the agency received on the advance notice, Mr. Becerra said.
"We are absolutely going to make sure that when the final gavel falls on this, it will not only move us in the right direction, with more efficiency, but it also will protect every Medicare benefit for seniors and disabled Americans who use the Medicare program," Mr. Becerra said.
Sen. Bob Menendez, a Democrat from New Jersey, told Mr. Becerra he is concerned about the impact of the rate changes on MA beneficiaries in Puerto Rico, where 94 percent of Medicare beneficiaries use the program.
An analysis from consulting firm Wakely, commissioned by AHIP, found that Puerto Rico could see a 10.9 percent reduction in reimbursement from the changes, much higher than the projected reductions in the 50 states.
Mr. Becerra assured senators multiple times during the hearing that the final proposal will not cut benefits.
"What the president has said is we will guarantee that there will be no cuts to the benefits under Medicare in this proposal. The providers will see, in most cases, an increase, a substantial increase in some cases, to the monies they're receiving," Mr. Becerra said.
HHS maintains that the advance notice overall equates to a small bump, around 1 percent, in funding for Medicare Advantage.
Sen. Elizabeth Warren, a Massachusetts Democrat, said she urges CMS to finalize the proposal. She said claims that the rate changes are funding cuts are the result of industry-funded studies pushed by lobbyists.
"The insurance companies overall are going to get more taxpayer dollars, not fewer," Ms. Warren said. "But insurance companies want a lot more taxpayer dollars, not just a little more, so they're kicking and screaming, and they even shelled out millions of dollars for a primetime Super Bowl ad opposing the proposal."
CMS will issue a final ruling on the advance notice by April 3.