CMS recently released its Calendar Year 2027 Advance Notice and it’s changing how Medicare Advantage plans think about growth as a long-term strategy. The proposed increase to plan payments is only 0.09%, a stark contrast to last year’s 5.1%. For plans already facing cost constraints, this negligible increase means that enrollment growth alone won’t deliver profitability and sustainability gains. Plans need to reduce administrative expenses, strategically design benefits to attract balanced member mixes, and address high-cost areas of business operations.
