Physician's Capitation Trends

M+C increases expected

Federal payments to Medicare+Choice managed care organizations are expected to rise in 2002, with hikes in the floor rates for poorer counties increasing as much as 5%, according to the Health Care Financing Administration (HCFA). The official rates for 2002 will be announced in March.

Every Medicare managed care plan will see an increase in its year 2002 rates, says HCFA Acting Deputy Administrator Robert A. Berenson. Under current rules, M+C organizations that enter a county where no M+C plan has operated since 1997 — or where all of the plans left the program as of Jan. 1, 2001 — qualify for a new additional bonus of 5% for the first year and 3% the second year.