CMS Boosts 2027 Medicare Advantage Payments

The Centers for Medicare & Medicaid Services finalized a 2.48 percent average payment increase, far above the near-flat rate proposed in January.

A sign in front of the Centers for Medicare & Medicaid Services building in Woodlawn, Md., on March 19, 2025. Kayla Bartkowski/Getty Images

The federal government will increase payments to private Medicare insurers by 2.48 percent in 2027, far more than it initially proposed.

The Centers for Medicare & Medicaid Services (CMS) said on April 6 that the finalized rate will translate into more than $13 billion in additional payments to Medicare Advantage (MA) plans next year. In January, the agency had proposed a much smaller average increase of 0.09 percent, or about $700 million.