WASHINGTON — David Merritt, BCBSA senior vice president of External Affairs, released the following statement in response to the release of the advance 2027 Medicare Advantage (MA) and Part D rate notice by the Centers for Medicare & Medicaid Services (CMS):
“Over 35 million Medicare beneficiaries choose MA because it delivers better value, better access to care, and better health outcomes than original Medicare—especially for seniors with complex health needs and limited incomes.
“We appreciate CMS’ continued leadership and stewardship of MA and the ongoing support for the millions of beneficiaries who rely on the program. Unfortunately, the proposed growth rate in the 2027 Advance Notice is simply not enough to offset the unrelenting growth in U.S. medical spending. The costs of covering an MA beneficiary are grounded in real, measurable cost trends that continue to climb:
- Independent analyses estimate 2024 medical cost trend in the 6–8% range, driven heavily by increases in outpatient surgical volume, rising pharmacy costs, and higher hospital prices.
- From 2022-2024, spending on hospital care alone was 40% of the total increase in national health spending and more than doubled over the preceding two decades.
- Drug spending grew 10% in 2024—faster than other medical spending and adding to premium growth.
“This proposed rate increase would make it harder for health insurance providers to maintain affordable premiums and would jeopardize seniors’ access to the comprehensive benefits they depend on. Without payment rates that keep pace with medical costs, plans will have fewer resources to invest in care coordination, supplemental benefits, and innovations that help seniors stay healthy and independent.
“We have a shared commitment to an MA program that improves health outcomes, ensures access to affordable plan options, and delivers real value to taxpayers. We are eager to work with CMS on solutions that strengthen MA and ensure long-term stability and affordability for America’s seniors and people with disabilities.”
About Blue Cross Blue Shield Association
The Blue Cross Blue Shield Association is a national federation of independent, community-based and locally operated Blue Cross and Blue Shield companies that collectively provide health care coverage for one in three Americans.