CMS Proposes 0.09% Payment Increase for Medicare Advantage 2027

WASHINGTON—The Centers for Medicare & Medicaid Services (CMS) has proposed a 0.09% increase in Medicare Advantage (MA) payments for calendar year 2027.

If finalized, the proposed policies are projected to result in a net average year-over-year payment increase of 0.09%, or over $700 million in MA payments to plans in CY 2027. 

CMS said the proposed policies listed in its Advance Notice of Methodological Changes for Medicare Advantage Capitation Rates and MA and Part D Payment Policies will promote even greater payment accuracy, maintain beneficiary choice, help ensure affordable coverage for Medicare beneficiaries and enable an even more stable MA program in the long run.

“These proposed payment policies are about making sure Medicare Advantage works better for the people it serves,” said CMS Administrator Dr. Mehmet Oz. “By strengthening payment accuracy and modernizing risk adjustment, CMS is helping ensure beneficiaries continue to have affordable plan choices and reliable benefits, while protecting taxpayers from unnecessary spending that is not oriented towards addressing real health needs.”

The National Alliance for Care at Home submitted a nine-page comment letter to CMS on the proposal, emphasizing the important role of home health. The Alliance pointed out several ways that timely access to post-acute and in-home care is critical for patient health, and urged CMS to focus on accountability and timeliness related t Star Ratings, fair review processes and more.

“We urge CMS to proceed cautiously with proposals that would remove measures directly tied to beneficiaries’
ability to obtain timely access to medically necessary services, especially for high-need populations,” the Alliance wrote

The Alliance also urged CMS to look at creating a new measure tracking timely access to home health after a hospital or other discharge.

The proposals in the advance notice address coding differentials between Medicare Advantage and original Medicare for CY 2027.

A fact sheet with additional details is available. Comments on the proposal must be submitted by 11:59 p.m. Eastern on February 25, 2026.