CMS Announces 5.06% Payment Increase for Medicare Advantage Plans

The CMS has announced a notable increase in payments to Medicare Advantage (MA) plans for the 2026 fiscal year, with an average rise of 5.06%. This increase reflects a 2.83% adjustment from previous estimates cited in the Calendar Year 2026 Advance Notice, attributed mainly to an enhanced effective growth rate.

The effective growth rate has been set at 9.04%, a revision from the earlier estimate of 5.93%. This uptick results from incorporating additional data on fee-for-service expenditures for the fiscal year, which provides a more accurate reflection of actual costs.

In conjunction with these announcements, CMS has published the Calendar Year 2026 Rate Announcement details, which are accessible online for further reference. The adjustments in payment policies are part of the ongoing efforts to align Medicare Advantage plans with the rising costs of healthcare services.