In the 2017 MA Advance Notice, released February 19th, 2016, the Centers for Medicare and Medicaid Services (CMS) proposed a cut in payments to MA Retiree Coverage plans. The final rates will be set on April 4th. CMS’s own analysis shows its proposed cut would reduce funding to MA Retiree Coverage plans by at least 2.5%.

If CMS does not drop the newly proposed cuts, the 3.3 million seniors with MA Retiree Coverage could see higher costs, reduced benefits and fewer provider choices. If the proposed cuts are finalized, seniors would learn of these disruptions in September 2016.

Prior to the release of the proposed cuts, a bipartisan, bicameral supermajority of 369 members of Congress wrote to CMS urging the agency to protect the MA program.