The Centers for Medicare and Medicaid Services (CMS) announced that payment rates for Medicare Advantage plans will increase by 3.5 percent in 2008. (CQ Health Beat News)
Medicare Advantage plans offer beneficiaries the traditional fee-for-service program with the option to receive Medicare through private insurance plans like health maintenance organizations and preferred provider plans.
CMS also announced updates to Medicare Part D. The new annual percentage increase used for updating features like the deductible, the initial coverage limit, and the out-of-pocket threshold for the standard benefit is 4.64 percent for 2008. For updating the maximum co-payments below the out-of-pocket threshold for certain dual eligibles, the percentage increase is 2.42 percent.