Healthcare Costs & Affordability

Synthesis:

Over the past week, CMS finalized significantly higher Medicare Advantage (MA) rates for 2027 and revised the MA star ratings system to increase insurer payments, with analysts citing concerns about pre-election coverage disruptions as a driving factor—moves expected to bolster insurer revenue by $18.6 billion over the next decade and intensify scrutiny on MA’s true impact on costs and value (CMS finalizes higher Medicare Advantage rates for 2027, CMS finalizes star ratings changes that are expected to increase insurer payments). Meanwhile, fresh results from CMMI’s ACO REACH program signal ongoing potential for value-based payment models to deliver quality improvements and cost savings, contrasting with challenges in bundled payment models like the Oncology Care Model, where net losses eclipsed savings—underscoring persistent tensions over which VBC structures are most effective and sustainable ([ACO REACH yields good quality and savings results](https://news.google.com/rss/articles/CBMic0FVX3lxTFAzbVUzejl1VTNHN3J5TnV1ODhoQmlEZnZvb2NFX2UyejdQc1BodURnazM1Vm5TW