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How does the healthcare law reward high-quality Medicare Advantage plans?

The healthcare law rewards Medicare Advantage plans that provide high-quality care. The law also sets up new rules to make plans more cost effective.

The Centers for Medicare & Medicaid Services (CMS) has a rating system for Medicare Advantage plans. Plans that rate at least four out of five stars will receive bonus payments for providing better-quality care. The bonuses began in 2012. You can review your plan’s rating on Medicare’s website: www.medicare.gov/find-a-plan.

Plans must use some of the bonus money they receive for extra benefits and rebates to people participating in the plans. This means that higher-quality plans may be able to offer you more services.

Medicare Advantage plans cannot charge more than Original Medicare for certain services. These services include chemotherapy administration, kidney dialysis, and skilled nursing care.

Starting 2014, Medicare Advantage plans must limit how much they spend each year on administrative costs. For each dollar you pay in premiums, Medicare Advantage plans may not spend more than 15 cents on administrative expenses.

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Important: This content reflects information from various individuals and organizations and may offer alternative or opposing points of view. It should not be used for medical advice, diagnosis or treatment. As always, you should consult with your healthcare provider about your specific health needs.