How to Win in Medicare Advantage 2026

Welcome back to the Value-Based Care Advisory podcast! In this episode, host Alex Yarijanian delves into the significant updates and strategies for 2026 in the Medicare Advantage space. He covers essential news and policy changes, including a 5% increase in Medicare payment rates, the scaling back of supplemental benefits, and the permanence of telehealth for behavioral health. Alex also discusses updates to the Medicare physician fee schedule, redesigned enrollment forms, new health risk assessment requirements, and the transition to a new risk adjustment model. Learn how these changes will impact care delivery, compliance, and strategy, and discover what it takes to thrive in this evolving landscape. Tune in and prepare for the Medicare Advantage showdown of 2026!
00:00 Welcome to the Value-Based Care Advisory Podcast
00:15 2026 Medicare Advantage Showdown Overview
01:24 Key Policy Updates for 2026
03:11 Telehealth and Virtual Care Innovations
04:39 Enrollment and Form Updates
06:12 Risk Adjustment and Star Ratings
08:52 Strategic Focus Areas for 2026
14:44 Final Thoughts and Conclusion
Takeaways:
- The 2026 Medicare Advantage payments are set to increase by approximately 5%, contributing an excess of $25 billion to the plans.
- Significant changes have been initiated regarding supplemental benefits, particularly affecting non-medical services like transportation and meals.
- Telehealth services for behavioral health will become a permanent fixture, with no geographic restrictions imposed from 2026 onward.
- New billing codes will be introduced for digital therapeutics and remote monitoring, enhancing the infrastructure for virtual care delivery.
- The upcoming risk adjustment model will utilize the full 2024 CMS HCC risk model, significantly impacting financial strategies for Medicare Advantage organizations.
- Plans must prioritize compliance and operational integrity to navigate the complexities of changing regulations and maintain their competitive edge.
00:00 - Untitled
00:15 - Introduction to the 2026 Medicare Advantage Showdown
00:49 - Medicare 2026: Key Changes and Impacts
07:43 - Transitioning Risk Adjustment in Medicare
11:17 - New Developments in Medicare Advantage
12:14 - The Future of Virtual Care: Strategies for 2026
16:02 - The Turning Point in Medicare Advantage
Welcome back to the Value Based Care Advisory Podcast.
Speaker AI'm your host, Alex Arijanian and I see many of you listening in, tuning in from different parts of the world and certainly the United States.
Speaker AAnd I don't know who you are, but I welcome you to this space.
Speaker ASo today's episode is all about 2026 Medicare Advantage showdown.
Speaker AAgain, this is a niche podcast.
Speaker AThis is where I share guidance and insights that I share with clients on calls.
Speaker AOf course they pay.
Speaker AAnd then I wonder about all the others who don't have access to me, who don't have access to the capital or the resources to secure this type of business consulting, this type of go to market leadership and guidance.
Speaker ASo today I want to share it with you.
Speaker AI want to share with you what's coming 2026 in the Medicare space.
Speaker AThat's the year when payment rules, virtual health and stars align.
Speaker AAnd I don't mean stars in the universe or the terrestrial stars, I mean Medicare star ratings.
Speaker AAll of these align and collide in ways that will decide who wins and who falls behind in Medicare Advantage.
Speaker ASo the question you have to ask if you want to listen any further here is are you going to win?
Speaker ASo if the answer is yes, keep listening.
Speaker ASo I'm going to first give you some news and policy updates for 2026.
Speaker ANumber one really is the Medicare payment rates jump.
Speaker ASo CMS announced that final 2026 payments are up about 5% beyond the initial 2% that was proposed.
Speaker ASo that's over $25 billion additional dollars to Medicare Advantage plans.
Speaker AThis has already spiked major insurer stock gains.
Speaker AAnd it matters because more margin means more flex.
Speaker AInsurers can reinvest in network benefits quality if they choose wisely.
Speaker AAnother is supplemental benefit pullback.
Speaker ASo I don't know if you heard, but CMS is tightening the scope for sspci.
Speaker ASo that's a special supplemental benefit for the chronically ill. Those will be scaled down, they'll be separated.
Speaker AScaling back non medical benefits, which is, to be honest, sad.
Speaker AI'm just giving you a policy update and I'll add some editorial in there.
Speaker AScaling back benefits like meals, transportation, over the counter items, it's not a disruption so much as a squeeze on the edges, right?
Speaker ABecause it's not like you have mass delivery of these services anyway.
Speaker AAnd now you can kind of see why, right?
Speaker AThose who take risks and implement these types of delivery systems and deliver meals and transportation are still finding a lack of reliance and stability in terms of how these supplemental benefits are going to be administered.
Speaker AMoving forward and it matters because it forces leaders to focus marketing not on shiny perks, but on core value.
Speaker ACore value, networks, meds, outcomes.
Speaker ASo if you're in that space, your partnership prospects look like they need some attention for the coming year.
Speaker AThink about it now.
Speaker ATelehealth, the big thing.
Speaker ATelehealth for behavioral health becomes permanent.
Speaker AOkay, so virtual health is sticking around permanent coverage, no geographic restrictions and no requirement for an in person visit starting 2026 for FQHCs and Rural Health clinics, federally qualified health care centers and rural health clinics.
Speaker AAnd it matters.
Speaker AIt matters because Medicare Advantage payers will continue to lean into virtual behavioral health, making it a standard, not a supplement.
Speaker ANext, I want to share how virtual care wins in fee schedule.
Speaker ASo the 2026 Medicare physician fee schedule expands virtual care even beyond behavioral.
Speaker ASo I'm talking about digital therapeutics for adhd, updates to the diabetes prevention program and, and new codes for remote monitoring.
Speaker AAll of these are on deck.
Speaker AAnd this is important.
Speaker AIt matters to you.
Speaker AIt matters because the infrastructure for virtual primary and chronic care is getting stronger.
Speaker AMA plans that support and integrate these innovations will stand out.
Speaker AAnd it's, it's your role to stand yourself out.
Speaker AYou have to understand, plans are dealing with thousands of thousands of network participants right now.
Speaker AHow are they going to pick and choose?
Speaker AHow are you going to put yourself in front of the Medicare Advantage plans at the right time, at the right place, with the right messaging to get the right type of deal?
Speaker AI want to inform you of some paperwork related stuff, so enrollment and form updates.
Speaker ACMS is rolling out a redesigned Medicare Advantage Part D enrollment form.
Speaker ASo before you start falling sleep behind the wheel, what they're going to do is they're going to remove optional demographics like race, ethnicity, sexual orientation, gender identity.
Speaker AA little editorial here is that, you know, initially when all this information was starting to be collected, it was added one by one.
Speaker ASo first it was race, then they came back and added ethnicity.
Speaker ASometime later they added sexual orientation.
Speaker AThen they added gender identity, which, you know, it's great to collect data, but I think it sucks that race and ethnicity have to now go because this list was so long to begin with.
Speaker ASo that's upsetting to me.
Speaker ATo remove optional demographics like race and ethnicity is.
Speaker AIt's optional, but folks still have the option of reporting.
Speaker AAnd it's something we want to know.
Speaker AAnd it matters because it might streamline enrollment and it also signals shifting priorities around this equity topic, dei, et cetera.
Speaker ABut there is nothing that makes sense in terms of, hey, you don't know what risk strata to put your enrollees because you do consider race, ethnicity.
Speaker AYeah.
Speaker AAlso sexual orientation, certain instances into your risk modeling.
Speaker ASo a plan could perform better if they have better insight into the population, even though if it is optional.
Speaker ASTAR ratings and health risk assessment rollouts.
Speaker ASo we've been talking about this since the aca, AKA Obamacare was being implemented and I was director of managed care at these community clinics and the clock was turning, the law was about to be implemented.
Speaker ASo we're still talking about how to do health risk assessments.
Speaker ATruly, it's like the equivalent of lacking high speed rail in the United States.
Speaker AIt's moving very, very slowly.
Speaker AAnd so I'm going to announce that starting October 2026, RAs will be required for enrollment dates in 2027.
Speaker ASo new breast cancer screening measures will be counted in 2029.
Speaker AAre you with me?
Speaker ASo do you do understand that when it says starting 2026 that means the health plans are right now at the, in, in August of 2025 wrapping up deals to make that happen or thinking about how they're going to make it happen?
Speaker ANow the question is, will you pop up at the right place at the right time and let them know how you plan to help the Medicare Advantage organization make this happen?
Speaker AWhy does it matter?
Speaker AWhy does it matter?
Speaker ADJ it matters because these measures re emphasize preventative metrics as the benefits scope shrink elsewhere.
Speaker ASo as we're seeing shrinkage in the non medical services, we're seeing good expansion here with good old preventative metrics.
Speaker AAnd seven because I like the number seven sometimes although I like eight better is risk adjustment is fully transitioning now.
Speaker AFully transitioning.
Speaker ASo it's been in transition.
Speaker AAnd when I read this from the cms, I remembered how it's been transitioning for some time now, is now using the full 2024 CMS HCC risk model, whatever that means.
Speaker ARight.
Speaker AI mean it's complicated.
Speaker AThey're updating algo, et cetera.
Speaker AThe point of this podcast is tell you how that works, especially if you're driving.
Speaker ABut what happens is that it brings you $12.9 billion in savings to particularly trust fund which as a millennial, I'm very much for that trust fund being preserved.
Speaker AOf course $12.9 billion is not a whole lot, right?
Speaker ABut the Medicare Advantage organizations could use some mitigation in terms of how much risk adjustment they get retro and moving forward.
Speaker ASo again, while the details of this I do not know if you are into providing the HCC risk modeling for plants, this is something you should Be reading, send me, tell me your notes.
Speaker AAll right, so I'm going to focus on three.
Speaker AWhy don't I focus on three areas that I just talked about and delve a little bit deeper and bring you some food for thought.
Speaker AOkay, so what did I say at the beginning of this podcast?
Speaker AI said what CMS just changed for 2026.
Speaker AI talked about 5% boost in Medicare Advantage payments for 2026.
Speaker AThat is a $25 billion flow into health plans.
Speaker AThis is higher than the original proposal.
Speaker AI know some of you might have heard, you know, earlier this year, MA plans are getting a boost, etc.
Speaker ANow we know it's a 5% boost and stocks for these insurance companies jumped overnight when this was announced.
Speaker ASo let's be clear that money doesn't automatically make it to providers or innovators.
Speaker AOkay, you're not getting a $25 billion check at least yet.
Speaker AIt's a margin opportunity and how it's deployed will decide who thrives.
Speaker ABut first you decide if you thrive and then how you deploy this margin opportunity will be the decisive factor in your performance in 2026.
Speaker ARemember, at the same time, CMS is tightening the belt on supplemental benefits perks like meals, over the counter, transportation, all of these are being scaled back.
Speaker ASo what I want you to think about also is that if you had a strategy, if you're one of these states where you said, let's say California, where you do get paid for non medical services like meals under, for instance, the Calaim program and so on, you would have been smart to couple that with your Medicare supplemental benefit programs.
Speaker ANow would you have, I mean, you know, conf figured how those would be rolled back potentially because they, they're optional supplemental benefits.
Speaker AOSP.
Speaker AThey're not MSPs, those are mandatory supplemental benefits.
Speaker ASo the message is simple.
Speaker ABenefits should be connected to outcomes, not just marketing fluff.
Speaker AWe don't want to see marketing fluff.
Speaker AAnd I'm glad that CMS is actually putting in mechanisms to reduce that.
Speaker AAnd then I told you about the risk adjustment.
Speaker AI want to talk about virtual care here.
Speaker AThe most important change really is that behavioral telehealth is being made permanent.
Speaker ANo geographic restrictions.
Speaker AThis really cements behavioral health as one of the pillars of Medicare Advantage strategy.
Speaker ABut that's not all.
Speaker AThat's not all.
Speaker ARemember I told you about new billing codes available I was sharing with DJ earlier.
Speaker AThese new billing codes update the Diabetes Prevention program model, which probably we should do an episode on.
Speaker AAnd they provide new coding for remote monitoring.
Speaker ASo CMS isn't just dipping its toe in the water.
Speaker AIf you need a translation.
Speaker AOkay.
Speaker AIt's building the pipes for digital health.
Speaker ABuilding the delivery system for digital health.
Speaker AYou know that the president administration is very forward on digital is very forward on kind of looking outside the box.
Speaker AOkay.
Speaker ASo if you're a provider group, a health plan startup, my question is this.
Speaker AAre you treating virtual care like a bolt on or are you backing it into the core of your care model?
Speaker ABecause in 2026 virtual isn't an experiment, it's table stakes.
Speaker AIf you're virtual only you have challenges.
Speaker AIf you're brick and mortar only you have challenges.
Speaker AWhat is your hybrid strategy now that's going to lead into.
Speaker AI'm going to tell you what payers really want in 2026.
Speaker AWhat are they looking for?
Speaker AEfficient care delivery.
Speaker AWhat does that mean?
Speaker ADo the thing that you need to do to get the outcomes that is desired and do it in a way that is team based as virtual first, that has boots on the ground.
Speaker ANext is your compliance muscle.
Speaker AThe risk model shifts make stop making documentation and coding audits more critical than ever.
Speaker APlans don't want partners who are creative with coding.
Speaker ADon't get creative.
Speaker AThere's get creative with other things.
Speaker AThey want partners who are bulletproof.
Speaker ASo please scale it down with the excessive PowerPoint slides talking about numbers that have nothing to do with that particular client or prospect.
Speaker AThe MA plan.
Speaker AWhat is your digital member engagement strategy?
Speaker ASeniors are switching plans at higher rates.
Speaker ASo if I'm Humana and my patients, my seniors are leaving.
Speaker AWell I'm going to like if I hear a solution that keeps members loyal, simplifying benefits, reducing surprise costs and using digital channels to build trust.
Speaker ANext is Star performance.
Speaker AEvery operational leader is tied back to stars and with new measures like breast cancer screening being phased in.
Speaker AAre you a forward looking provider?
Speaker AAre you building processes that now now to stay ahead?
Speaker AAre you building processes to be ahead?
Speaker AThink about it.
Speaker AAre you building process to accommodate current chaos?
Speaker AAnd last is scalability.
Speaker AIt's a word that's been thrown around, it's lost its shine.
Speaker AScalability is for instance whether it's forms, health risk assessments, prior auth changes, contracting, network management, etc.
Speaker AHealth plans want partners who can adapt quickly without breaking operations.
Speaker AWe're not looking to disrupt, we're looking to facilitate.
Speaker AWe're looking to enhance.
Speaker ASo this is where I stand you guys, this is where I land.
Speaker AThe 2026 showdown in Medicare Advantage is about focus and execution.
Speaker AYes, there's more money flowing.
Speaker AYes, virtual care is becoming permanent.
Speaker ABut the winners won't be the ones trying to do everything.
Speaker AThe winners will be these people.
Speaker AOne they're nailing risk adjustment.
Speaker AThey're getting what it means by compliance.
Speaker AThey have world class star operations.
Speaker AThey use virtual health not as a perk, but as a backbone of care delivery.
Speaker AAnd they don't rely just on virtual.
Speaker ASeniors don't care about CMS memos or risk models.
Speaker ARight.
Speaker AThey care about trust, clarity, outcomes, how they feel when they interact with that system.
Speaker AAre they further relaxed or do they feel tension?
Speaker ADo they feel cared for or do they feel abandoned?
Speaker AIf you get that right, the revenue flows and it will flow.
Speaker AI just told you the sum is about to be flowing.
Speaker ASo here's your challenge in 2026.
Speaker APick your battleground.
Speaker AWhat will it be?
Speaker AWill it be stars?
Speaker AVirtual care?
Speaker ADocumentation, integrity?
Speaker AWhatever it is, commit, invest and execute at the world class level, standardized with your payer partners.
Speaker ABecause this is not just another year in Medicare Advantage.
Speaker AIt is a turning point.
Speaker AAnd with that, I'm Alex Arijanian and this has been the Value Based Care Advisory podcast.
Speaker AThanks for tuning in and I'll see you next time.