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26 January 2026

CMS issues CY 2027 Medicare Advantage and Part D Advance Notice

On January 26, the Centers for Medicare & Medicaid Services (CMS) issued the Calendar Year (CY) 2027 Advance Notice of Methodological Changes for Medicare Advantage (MA) Capitation Rates and MA and Part D Payment Policies. In the Advance Notice, CMS proposes a net average payment increase of 0.09% for MA plans, updates to MA and Part D risk adjustment models, and updates to MA star ratings measures and calculations.

“These proposed payment policies are about making sure Medicare Advantage works better for the people it serves,” CMS Administrator Mehmet Oz, MD, said in a news release. “By strengthening payment accuracy and modernizing risk adjustment, CMS is helping ensure beneficiaries continue to have affordable plan choices and reliable benefits, while protecting taxpayers from unnecessary spending that is not oriented towards addressing real health needs.” The Advance Notice is open for comment until February 25, and the final rate announcement is expected by April 6.

In related news, on January 27, CMS informed plans that it is currently developing the calendar for future Risk Adjustment Data Validation (RADV) audits and anticipates beginning the PY 2020 RADV audits by February 2026. CMS said it “still plans to secure new technology, powered by artificial intelligence, that will be used as a medical coder support tool to streamline human coding reviews.” The agency will provide more information about the technology at a future date.

Additional information is available in the WCEY Health Alert, attached below.

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Attachment

CMS Issues CY 2027 Medicare Advantage and Part D Advance Notice

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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2026-0322

 

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