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The Health Care Financing Administration announced today that the new federal reimbursement rates for Medicare+Choice managed care organizations beginning in March, 2001 as required in the Medicare, Medicaid and SCHIP Benefits Improvement and Protection Act, are now posted at www.hcfa.gov/stats/hmorates/aapccpg.htm.

"With the publication of these rates we've met an ambitious deadline set by the recently enacted legislation," said Dr. Robert A. Berenson, HCFA Acting Deputy Administrator. "The legislation, which increases payments to Medicare+Choice organizations, is intended to stabilize plan participation in Medicare, and encourage the return of plans that have left the program."

Managed care organizations will see an increase of $9 billion in reimbursement and risk adjustment rates over the next five years. According to the legislation signed on December 21, 2000, managed care organizations that currently contract with HCFA may use the funds only to reduce beneficiary premiums or co-pays, enhance benefits, stabilize or widen the network of health care providers available to beneficiaries, or reserve funds to help offset premium increases or reduced benefits in the future.

To qualify for the increased rates, which are effective beginning March 1, 2001, managed care organizations that renewed their contracts with HCFA for 2001 are required by law to revise their Adjusted Community Rate Proposal (ACRP) and submit this to HCFA by January 18, 2001.

Managed care organizations that notified HCFA that they are ending their contract or reducing their service areas for 2001 may rescind those decisions and receive the increased capitation payments if they submit a new ACRP for HCFA review by January 18, 2001.

More complete information is now posted on another HCFA Web site: www.hcfa.gov/medicare/cy2001.htm

Currently, 5.7 million of the 39 million people with Medicare have chosen to be in a Medicare+Choice organization.