Value-Based Care
The Margin Squeeze Is Real: Why Quality Bonus Dollars Matter More in 2027
For most of the last decade, Medicare Advantage growth covered a lot of operational sins. Rates rose, enrollment climbed, and a plan could carry a mediocre Star Rating without feeling it in the margin. That era is over. With the final 2027 rate set against medical costs that have run hot across the industry, the gap between a 3.5-star plan and a 4-star plan is no longer a quality-department talking point. It is a line on the income statement. Quality bonus dollars have quietly become one of the few margin levers a plan still controls, and most plans are underusing it. CMS finalized a net effective growth rate of about 2.48 percent for 2027, which the agency estimates as an increase of more than $13 billion in payments to plans.
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