Premiums for the popular Medicare Advantage program will drop slightly in 2017, as enrollment is expected to reach a record high.
The Centers for Medicare and Medicaid Services announced Thursday that the average monthly premium in the program will drop by $1.19, about 4 percent, next year. That will bring premiums to $31.40, according to the agency.
Medicare Advantage allows seniors to get private health plans for Medicare coverage and in 2017 will comprise about 32 percent of all Medicare enrollees. That is up from 24 percent in 2010.
The average premiums for Medicare’s prescription drug plan Part D will remain the same next year.
The rate announcement comes about five months after the Obama administration raised payment rates for insurers that sell Medicare Advantage plans.
CMS called for a 0.85 percent increase to payment rates for Medicare Advantage insurers in 2017.
A move to cut rates last year was halted by CMS after a huge lobbying effort from the insurance industry, which has seen higher profits from Medicare Advantage.
