2022 Medicare Advantage and Part D Advance Notice Part II

CMS released Part II of the Calendar Year (CY) 2022 Advance Notice of Methodological Changes for Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies (the Advance Notice). CMS released Part I of the CY 2022 Advance Notice on September 14, 2020. CMS will accept comments on both parts of the CY 2022 Advance Notice through Friday, November 30, 2020, before publishing the final Rate Announcement by April 5, 2021.

Net Payment Impact

The chart below indicates the expected impact of the proposed policy changes on MA plan payments relative to last year.  

Year-to-Year Percentage Change in Payment

Impact2022 Advance Notice
Effective Growth Rate4.55%
Rebasing/Re-pricingTBD1
Change in Star Ratings-0.34%
Medicare Advantage Coding Pattern Adjustment0%
Risk Model Revision0.25%
Encounter Data Transition0%
Normalization-1.64%
Expected Average Change in Revenue22.82%

1Rebasing/re-pricing impact is dependent on finalization of the average geographic adjustment index and will be available with the publication of the CY 2022 Rate Announcement.

2The total does not include an adjustment for underlying coding trend.

Click here for more information on these changes from CMS.

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