President Trump Issues Executive Order Promoting Medicare Advantage

Drawing a contrast with Medicare-for-All proposals, President Trump issued an Executive Order bolstering the Medicare Advantage program (Part C) and making payment changes to fee-for-service Medicare (FFS).

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On October 3rd, drawing a contrast withMedicare-for-All proposals, President Trump issued an Executive Order bolstering the Medicare Advantage program (Part C) and making payment changes to fee-for-service Medicare (FFS).

Order details: The order proposes the following changes to Part C:

  • Encouraging increased supplemental benefit offerings, benefits designed to maintain health status by improving social determinants of health;
  • Allowing plan participants to share in savings generated by supplemental benefits via cash or monetary rebates;
  • Promoting broader adoption of telehealth services; and
  • Increasing access to Medicare Medical Savings Accounts, accounts similar to HSAs.

For FFS Medicare, the order calls for aligning payments more closely with Part C and commercial insurance; encouraging site-neutral and provider-neutral payments; increasing provider access and increasing cost and quality transparency.

Business Group position: The Business Group strongly supports added flexibility for Medicare C plans that encourage innovative plan design tackling population health improvement, increasing provider access and encouraging consumerism. These improvements also have a positive impact on retirees in Medicare Advantage plans, including employer group waiver plans (EGWPs).

Outlook: Agencies are likely to issue proposed rules within the next year to implement the requirements. The Business Group will examine proposals and may provide comments.

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