CMS released Part II of the Calendar Year (CY) 2022 Advance Notice of Methodological Changes for Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies (the Advance Notice). CMS released Part I of the CY 2022 Advance Notice on September 14, 2020. CMS will accept comments on both parts of the CY 2022 Advance Notice through Friday, November 30, 2020, before publishing the final Rate Announcement by April 5, 2021.
Net Payment Impact
The chart below indicates the expected impact of the proposed policy changes on MA plan payments relative to last year.
Year-to-Year Percentage Change in Payment
| Impact | 2022 Advance Notice |
| Effective Growth Rate | 4.55% |
| Rebasing/Re-pricing | TBD1 |
| Change in Star Ratings | -0.34% |
| Medicare Advantage Coding Pattern Adjustment | 0% |
| Risk Model Revision | 0.25% |
| Encounter Data Transition | 0% |
| Normalization | -1.64% |
| Expected Average Change in Revenue2 | 2.82% |
1Rebasing/re-pricing impact is dependent on finalization of the average geographic adjustment index and will be available with the publication of the CY 2022 Rate Announcement.
2The total does not include an adjustment for underlying coding trend.