CMS Proposes 2.3 Percent Payment Increase for Medicare Advantage Plans

The increase would equate to an additional $21 billion in payments to Medicare Advantage plans during 2026.

A pharmacy sits in a chain store in New York City on July 23, 2024. Spencer Platt/Getty Images

Health insurance companies selling private Medicare Advantage (MA) plans will pay a higher rate in 2026 if the incoming Trump administration adopts the Biden administration’s latest proposal.

The Centers for Medicare and Medicaid Services (CMS) on Jan. 10 proposed to increase the average benchmark payment to private MA plans by 4.33 percent for 2026, compared to a modest cut by 0.16 percent for 2025.