Insurers will make $11.8 billion in Medicare quality bonus payments this year

After increasing by more than 400% between 2015 and 2023, federal spending on Medicare Advantage bonus payments will decline by $1 billion to $11.8 billion in 2024 – an 8% decline – following the expiration of pandemic-era policies that temporarily increased star ratings for some plans, according to a new KFF analysis.

Despite the decline, total spending on Medicare Advantage plan bonuses is higher in 2024 than in every year between 2015 and 2022.

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