Another leak on Advantage rates—this time by CMS

Actuaries at the CMS appear to have leaked sensitive financial information about the future direction of Medicare Advantage rates to insurance industry stock market analysts. It's the second year in a row that market-moving data has been prematurely released, although this time the source is no mystery.

The Wall Street Journal reported Friday morning that the agency told industry actuaries during a Dec. 3 teleconference that Medicaid Advantage rates would be lower than expected for 2015. Nearly a quarter of the 400 people on the call were unidentified, according to the paper's review of public records. “I'm never sure who is on the call,” an agency official admitted to the paper. “I wouldn't be surprised if there were one or two stock analysts on the call.”

Stock prices fell sharply over the ensuing month, long before several Washington insider consulting groups and stock market analysts issued reports making the information public. Meanwhile, the CMS announced in February that MA payments to insurers would fall less sharply than anticipated and this week, the agency said rates would actually go up slightly next year. Share prices have rebounded sharply this year.

A year ago, a Washington political-intelligence firm gave advance notice of the scope of proposed MA cuts to Wall Street firms, which sent insurance stocks soaring. The Securities and Exchange Commission and Justice Department are still investigating those leaks.

Follow Merrill Goozner on Twitter: @MHgoozner