TABLE 2.

Changes in the MA payment schedule (1997–2011)

	1997	19981	1999	20002	2001	2002	2003	20043	2005	20064	2007	2008	2009	2010	2011
Update methodology
AAPC 95%	X
AAPC 100%								X	X	X	X	X	X	X	X
One floor		X	X	X
Urban/rural floor					X	X	X	X	X	X	X	X	X	X	X
2 pct. pt. increase		X	X	X		X	X	X	X	X	X	X	X	X	X
3pct.pt.increase					X
Blend				X				X
Risk-adjustment method
Demographic (%)		100	100	90	90	90	90	70	50	25	10	0	0	0	0
Demog/diagnosis (%)		0	0	10	10	10	10	30	50	75	90	100	100	100	100
Penetration/Payment
Managed care pen. (%)			13.1	13.5	12.0	10.6	9.6	9.5	9.7	10.9	11.8	13.5	14.3	18.0	18.7
MA payment mean ($)			617	613	627	653	670	668	729	754	765	795	814	850	854
MA payment min			483	487	502	572	596	593	631	650	660	683	699	726	729
MA payment max			1,030	1,024	1,018	1,011	1,018	1,015	1,303	1,343	1,362	1,410	1,443	1,499	1,505

Data source: http://www.cms.gov/Medicare/Health-Plans/MedicareAdvtgSpecRateStats/Ratebooks-and-Supporting-Data.html.

Notes: MA managed care penetration rate is calculated as the total number of Medicare beneficiaries enrolled in an HMO or PPO plan in January divided by the total number of Medicare beneficiaries. MA penetration data are calculated from Medicare enrollment files. Payment rate is the county aged payment rate in 2011 dollars.

¹BBA in effect.

²BIPA in effect.

³MMA in effect.

⁴Bidding introduced.