Medicare Advantage insurers are taking their first stab at getting the Trump administration to chart a new, more lightly regulated path for the program.
In comments on the Medicare Advantage and Part D policy proposed rule for 2026, health insurance trade associations call on the Centers for Medicare and Medicaid Services to make a slew of changes in the final rule, such as scrapping Medicare and Medicaid coverage of obesity drugs, extending a Medicare Advantage payment model the industry favors, and eliminating a health equity payment adjustment.
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Insurance companies faced considerable stress during President Joe Biden's term, when CMS implemented numerous regulations and actions that squeezed Medicare Advantage profit margins, triggering significant pressure from Wall Street.
With President Donald Trump back in the White House, the industry has a fresh opportunity to roll back some of those policies and enjoy higher Medicare revenue. Although Trump has not articulated a Medicare Advantage agenda, his nominee for CMS administrator, Dr. Mehmet Oz, is a vocal supporter of the program.