CMS proposes Medicare Advantage rate increase, raising alarms

(The Center Square) – The Centers for Medicare and Medicaid Services has proposed a 0.09% advance rate increase for Medicare Advantage plans in 2027, a figure analysts say falls short of expectations and projected medical cost growth. The proposed increase follows roughly a 5% rate increase for 2026 and trails analyst expectations of 4% to 6%. CMS has projected that overall Medicare spending will rise 8% in 2025 and 9% in 2026. The Wall Street Journal Editorial Board noted that spending is growing even faster, at 11% this year. Hospital service prices have climbed sharply over the past two decades. An analysis of Bureau of Labor Statistics data shows hospital services increased more than 280% from 2000 to 2025, roughly three times the overall inflation rate during that period. Over 30 million seniors use Medicare Advantage plans, which private insurers offer under federal contracts. The Wall Street Journal Editorial Board warned that the proposed rate would not keep pace with rising me