Wakely Wire

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Whitepapers, briefs, press releases and more

The LEAD Model: A New Chapter in Medicare Accountable Care

This Wakely white paper presents the LEAD (Long-term Enhanced ACO Design) Model as CMS’s next-generation approach to accountable care, distinguished from ACO REACH and MSSP by several key structural and financial changes. Running from 2027–2036, LEAD introduces major design elements including eliminating rebasing (locking in base years), expanding capitation and specialist risk-sharing (via NPCC and ... Continue reading

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The Value Shift: VBID After the Sunset

How the End of VBID Reshapes Part D and Supplemental Benefits This paper is part three of Wakely’s The Value Shift series, which examines how evolving policy and market forces are reshaping value in Medicare Advantage. The sunset of the Medicare Advantage VBID Model at the end of 2025 eliminated key flexibilities that plans used ... Continue reading

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Understanding Selection Risk Under BALANCE: Evidence from Recent MA Data

The BALANCE program was announced by the Center for Medicare and Medicaid Innovation (CMMI) in Late 2025 and is intended to expand access to GLP-1 therapies and related interventions for members with obesity and associated comorbidities. CMS later released a Request for Applications in March 2026 to Part D Plan Sponsors which provided several key ... Continue reading

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Week in Washington 4/9/26

CMS Releases MA Rate Notice  CMS released the final 2027 Medicare Advantage Rate Notice. The rule included an overall expected average change of 2.48%.  This was revised from the proposed rule’s average change of 0.09%. CMS estimates the change equals about $13 billion in additional payments to Medicare Advantage organizations. CMS Releases ACA Data  CMS ... Continue reading

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Newsworthy Findings

CMS Finalizes Higher Medicare Advantage Rates for 2027 in Gift to Insurers

Regulators locked in a 2.48% average rate hike for next year, much higher than the 0.09% that was originally proposed.

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Editor's Note
As a result of the higher rates, the federal government will pay MA plans an additional $13 billion in 2027, up from the roughly $700 million increase originally projected. The primary driver of this change was CMS’s decision to abandon proposed updates to the risk adjustment model, which would have required insurers to rely more heavily on recent data for member diagnoses and spending. While CMS did not move forward with those updates, it did finalize a policy restricting payments for diagnoses not supported by a corresponding patient encounter.

Insurers Committed to Cutting Prior Authorizations Have Eliminated 11% So Far

Last summer, major payers committed to pare back onerous prior authorization policies, to the skepticism of the provider industry. Now, AHIP and the BCBSA are providing an update.

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Editor's Note
While prior authorization is a valuable tool for preventing unnecessary procedures, it is widely disliked by providers, who say it slows the delivery of care and contributes to administrative burden. In response, major insurers pledged last summer to voluntarily scale back prior authorization requirements. As part of that effort, payers have also committed to standardizing data and submission requirements for electronic prior authorization, with the goal of answering at least 80% of electronic requests in real time by 2027.

Jefferson Health Sues Aetna Over Medicare Advantage ‘Downcoding’ Policy

The health system claims the policy, which reduces reimbursement for some inpatient hospital stays, violates federal law and its reimbursement contract with Aetna.

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Editor's Note
Aetna’s is getting sued by Pennsylvania-based health system, Jefferson Health, over new “downcoding” policy that may violate Medicare rules via the reduction of reimbursement for inpatient hospital stays. While Aetna states the purpose of the policy is to approve payment for inpatient hospital stays sooner, providers claim the policy allows for lower payments than contractually agreed upon for hospital stays.

ICHRAs, A Growth Opportunity for Insurers, Face Uphill Battle

Employers are turning to Individual Coverage Health Reimbursement Arrangements to cut costs, but rising premiums and instability on the individual market pose challenges.

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Editor's Note
ICHRAs are emerging as a growing opportunity for insurers and employers by shifting from traditional group insurance plans to defined contributions, helping control costs as group enrollment declines. Adoption is rising quickly, especially among large employers; growth is challenged by instability in the ACA individual market, rising premiums and regulatory uncertainty. Overall, ICHRAs represent a broader shift toward consumer-driven coverage, requiring insurers to adapt to strategies, tools, and engagement models.

Tracking the 2026 U.S. Measles Outbreaks

Measles infections in the U.S. this year are on pace to easily eclipse 2025, when the country reported the most annual cases in over three decades.

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Editor's Note
As of late March 2026, the United States had recorded about 1,575 measles cases, including major active outbreaks in states such as South Carolina and Utah, highlighting how quickly the disease can spread when vaccination rates decline, according to the article.

Just for Fun

Math Joke:

Why did the angle get promoted?

Prior Week

Q: What does the Excel analyst put in his hair?

A: Some product

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