Medicare Official Defends Slim Hike in Reimbursements, Says Program Must Be Cost-Effective
Health insurers’ stock prices fell the day after the federal government proposed changes to Medicare Advantage plans.
Mehmet Oz, administrator for the Centers for Medicare and Medicaid Services, speaks as (L-R) director of Medicare Chris Klomp, Pfizer CEO Albert Bourla, Secretary of Health and Human Services Robert F. Kennedy Jr. and President Trump look on after Trump announced a deal with Pfizer to lower Medicaid drug prices in the Oval Office on Sept. 30, 2025. Win McNamee/Getty Images
Medicare Advantage remains a critical program but must be cost-effective, a Medicare official said the day after the stock market reacted to news that reimbursement rates would remain flat for 2027.
“We continue to believe Medicare Advantage will and must play an important role in the future of Medicare,” Chris Klomp, director of Medicare and deputy administrator at the Centers for Medicare and Medicaid Services (CMS) said in a Jan. 27 tele-conference with Paragon Health Institute.
Sylvia Xu is a data journalist on the health care policy team.
