Arnold Ventures Applauds CMS’ Efforts to Rein in Medicare Advantage Costs, Notes 2025 Medicare Rates Include $16 Billion Increase in Plan Payments

Statement from Mark E. Miller, executive vice president of health care at Arnold Ventures after the Centers for Medicare & Medicaid Services (CMS) released finalized payment updates for Medicare Advantage (MA) and Part D.

WASHINGTON D.C. (Apr. 3, 2024)–​“We are pleased that CMS did not give in to special interests and are continuing efforts to rein in the egregious billing practices insurance companies profit from, often at the expense of seniors, those with disabilities, and taxpayers. This includes the implementation of risk adjustment changes as planned. 

It’s important to remember that annual overpayments to MA insurers cost billions of dollars each year, about $50 billion from coding alone. This final rate notice also increases payments to insurers by 3.7% or $16 billion. The long-term sustainability of Medicare continues to be under threat as the cost to taxpayers and enrollees continues to rise. 

Reining in waste and abuse is not a benefit cut. Despite scare tactics from insurers, there is still considerable room for them to reduce costs while earning significant profits and maintaining current benefits for Americans. 

We recognize the policymakers and leaders who have continued to push for meaningful reforms within MA, and we look forward to continuing to work with the administration and Congress on the larger reforms needed to protect and strengthen Medicare’s fiscal sustainability and ensure MA plans deliver value to seniors and taxpayers.”

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Arnold Ventures is a philanthropy that supports research to understand the root causes of America’s most persistent and pressing problems, as well as evidence-based solutions to address them. By focusing on systemic change, AV is working to improve the lives of American families, strengthen their communities, and promote their economic opportunity. Since Laura and John Arnold launched their foundation in 2008, the philanthropy has expanded, and Arnold Ventures’ focus areas include education, criminal justice, health, infrastructure, and public finance, advocating for bipartisan policy reforms that will lead to lasting, scalable change. As signatories of the Giving Pledge, the Arnolds have committed to giving away most of their wealth during their lives.

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