Author: LBodnarchuk

The Medicare Advantage Reset: What Health Plans Must Do Next

Medicare Advantage (MA), since its inception, has been on a meteoric rise. With more than half of all  eligible seniors enrolled in the program, it remains a popular choice for consumers. However, the convergence of several factors over the past few years has marked a turning point for the program as we know it. Driven primarily by the COVID pandemic reset, rising utilization, increased regulatory scrutiny and an overinflated market, leading payors are rethinking previous models for success. What weโ€™re seeing now are plans exiting key markets and launching resets of their own, including rethinking benefit designs, reducing administrative costs and considering the role of artificial intelligence in the context of managed cares, โ€œnew normalโ€. What worked yesterday, most certainly, will not work for tomorrow.

To be clear, this is not the end of Medicare Advantage; it is a paradigm shift. Those plans that seize this opportunity to take a hard look in the mirror and prepare themselves for the Medicare Advantage of tomorrow will most certainly be long term winners.

At ProspHire, we see four priorities that will define success for Medicare Advantage organizations in 2025 and beyond:

1. Define Your Goal, Then Recalibrate Portfolios, Products and Markets

The first step in navigating this reset is a strategic one, not an operational one. Too often, plans leap into tactical fixes without clarifying who they want to be. The fundamental question is: what is your goal?

  • Do you want to be a growth leader, capturing market share and aggressively expanding into new geographies?
  • Do you want to be a profitability leader, focusing on margin discipline and sustainable operations?
  • Do you want to specialize in specific populations, such as dual eligibles or chronic condition cohorts?

Once that strategic identity is clear, portfolios and products must be recalibrated accordingly. The right benefits, the right markets and the right member segments should all ladder up to that core purpose. Without alignment, plans risk chasing growth in areas where the economics donโ€™t work or overinvesting in products that donโ€™t match their long-term strategy.

2. Revitalize Member Engagement

Action areas include:

  • Proactive and personalized outreach, leveraging data to anticipate member needs.
  • Intuitive tools and digital navigation that reduce confusion.
  • A true focus on experience equity โ€” meeting members where they are, across geography, culture and socioeconomic status.

Another important note looming in the MA space is that the first Gen Xโ€™er will be Medicare eligible in 2030, which is less than 5 years away. This represents an entirely new consumer segment with new expectations that plans will need to meet.

3. Invest in Technology and Infrastructure for Tomorrow

Success in MA is massively dependent on data: how itโ€™s acquired, how itโ€™s managed and how itโ€™s used to make decisions. Many health plans today are still operating with fragmented systems, outdated analytics and cumbersome integrations. That is no longer sustainable.

The reset is the right moment to make serious infrastructure investments:

  • Build robust IT and analytics capabilities that support real-time decision-making.
  • Prepare for digital quality measurement and data submission in an ECDS/FHIR world.
  • Reevaluate vendor relationships to ensure each partnership contributes to a smarter, more integrated tech stack.

The message is simple: technology is a competitive differentiator and plans that invest wisely now will be positioned to outpace competitors for the next decade.

4. Optimize Revenue Drivers: Stars, Quality and Risk

While the regulatory environment continues to shift, the core revenue levers of Medicare Advantage (Stars, quality and risk adjustment) remain central to financial sustainability. Yet these are often not given the investments required or siloed into business-as-usual functions rather than treated with the strategic importance they deserve.

Health plans must:

  • Prioritize Stars improvement strategies that align with member experience, CAHPS and clinical outcomes.
  • Consider new, innovative care delivery models, including PACE, neighborhood-driven clinical care delivery and other models to deliver care that members need.
  • Tighten risk adjustment accuracy to avoid over- or under-coding exposures in a stricter audit environment.
  • Treat quality not as an end but as a margin enabler, directly tied to reimbursement and member retention.

Even amid change, this truth remains: optimizing Stars, quality and risk is not optional. It is a foundational pillar of Medicare Advantage success.

Whatโ€™s Next? Embrace the Reset and Seize the Opportunity

At ProspHire, we believe this is a moment for reinvention and a time for plans to confront hard questions, make bold choices and position themselves for long-term success. The Medicare Advantage of tomorrow will not look like yesterdayโ€™s version and that is precisely what makes this reset an opportunity worth seizing.

AI is Reshaping Healthcare: Here’s Where Experts See the Greatest Value

Artificial Intelligence (AI) is no longer a futuristic concept in healthcare โ€” itโ€™s here and itโ€™s making waves across multiple facets of the industry. From streamlining operations to enhancing patient care, AI promises to transform how health plans, providers and patients interact with the healthcare system.

Where Will AI Deliver the Most Value in Healthcare?

In September, we asked our LinkedIn community: โ€œAI in Healthcare: Where Will It Deliver the Most Value?โ€ and the results offer some intriguing insights.

Poll Results:

  • Fraud Detection โ€“ 44%
  • Revenue Cycle Management โ€“ 25%
  • Clinical Decision Support โ€“ 25%
  • Patient Engagement โ€“ 6%

What These Results Tell Us:

  • Fraud Detection Leads the Way: Nearly half of respondents see AIโ€™s biggest impact in combating fraud. This aligns with the growing need for healthcare organizations to protect revenue streams and reduce financial risk. AI-powered algorithms can identify unusual patterns in claims data, flagging potential fraud faster and more accurately than traditional methods.
  • Revenue Cycle Management & Clinical Decision Support: Both tied at 25%, highlighting AIโ€™s potential to optimize billing, coding and decision-making processes. AI can help providers make better clinical choices, reduce errors and ensure appropriate reimbursement.
  • Patient Engagement Trails Behind: Only 6% of votes pointed to patient engagement, signaling that while AI-driven apps and chatbots are growing, thereโ€™s still untapped potential in improving patient interactions and experiences.

Final Thoughts on AI in Healthcare

The results demonstrate that healthcare professionals are seeing AIโ€™s immediate value in operational efficiency and financial protection. While patient engagement remains a key area for innovation, the focus today is on ensuring accuracy, security and smart decision-making across the healthcare ecosystem.

At ProspHire, we help healthcare organizations harness the power of AI responsibly, targeting the areas that provide the highest return on investment and measurable outcomes.

Scaling or Optimizing Your Medicaid Operations? We’ve Got You Covered

There is a saying in the Medicaid community of โ€œif you know Medicaid in one state, you know Medicaid in one stateโ€ given the variation in program eligibility, services and operations across states. While this remains true, there are fundamentals in Medicaid services, quality performance and operations that remain the same nationally. 

As health plans seek to differentiate themselves in the market and deliver a member-first program, ProspHire supports health plans in establishing a strategic roadmap that integrates organizational goals and unique regional membership needs. ProspHire is dedicated to a regional approach to product development, quality programs, and member engagement. Demonstrating this commitment, ProspHire leverages and promotes the use of social determinant of health and other publicly available data sources to develop data-driven strategies and identify key steppingstones to appropriately address unique health plan membership needs. Check out our data dashboard! 

Medicaid plans seeking to outperform will need to look beyond their bottom line and focus on the successful delivery of care and resulting outcomes for their membership. ProspHire collaborates with health plans to bring vision and strategy to execution and reality as a partner to your organization and your community. 

The intent to award Medicaid contracts presents both opportunities and challenges for health plans. Whether you are an incumbent plan seeking to optimize performance or a new entrant preparing for go-live, ProspHire specializes in providing strategic support to drive operational success.

Opportunities in Focus

  • Operational Readiness
    • Develop and execute a comprehensive implementation plan to meet state requirements. Establish effective workflows, IT system integration and operational policies.
    • Conduct readiness assessments to mitigate risks prior to go-live.
  • Provider Network Expansion & Management
    • Assess and expand provider networks to meet state adequacy standards.Implement contracting strategies to enhance access to care and quality measure performance.
    • Improve provider relations and streamline credentialing processes.
  • Regulatory Compliance
    • Ensure alignment with state Medicaid regulations and reporting requirements. Conduct compliance audits and gap analyses.
    • Develop policies and procedures to maintain ongoing compliance.
  • Quality Programs, Performance & Addressing Health Disparities
    • Optimize HEDIS and Medicaid quality measures to improve performance. Implement care management programs to enhance member health outcomes. Align quality initiatives with state and federal benchmarks. Implement social determinants of health (SDOH) strategies. Develop community engagement initiatives to improve equity in care.
    • Leverage data analytics to identify and address disparities.
  • Member Experience
    • Improve CAHPS and member satisfaction scores through targeted interventions.
    • Develop data-driven member engagement strategies.
  • Administrative Cost Savings
    • Identify cost-containment opportunities to maximize efficiency. Streamline operations to reduce administrative burden through systems integration, process automation and strategic workflow optimization.
    • Leverage technology to enhance claims processing, contracting and other productive repetitive activities.

ProspHire Can Help

By partnering with us, health plans can confidently navigate the complexities of Medicaid implementation and achieve operational excellence. Contact us today to learn more about how we can support your success.

Soaring to New Health: Healthcare Uncovered Series

Welcome to the Healthcare Uncovered Podcast Seriesโ€“ your front-row seat to the future of healthcare. In this exclusive blog series, we spotlight expert insights and real-world strategies from ProspHireโ€™s Soaring to New Health podcast. Each episode takes a deep dive into a distinct area of the healthcare ecosystem, from the rise of cloud-based dental software to unlocking Medicare Stars success, optimizing Medicaid and navigating the ever-changing ACA marketplace. Whether youโ€™re a provider, payer or industry leader, these conversations are designed to inform, inspire and empower you to drive meaningful change. Need a quick overview? Click on the series highlights infographic to the right.

Explore the full series below and uncover the innovation shaping healthcare today.


The Modern Dental Practice โ€“ Software to Believe In

Revolutionizing Dental Care Through Technology

The dental industry is evolving, and cloud-based solutions are leading the charge. In this episode, we dive into the future of dental practice management software and how innovations are helping dental organizations scale, optimize operations, and improve patient care.

Our experts discuss the impact of cloud technology, how it enhances workflow efficiency and why leading dental practices are making the switch from legacy systems. If youโ€™re looking to streamline practice management and improve operational outcomes, this episode is a must-listen!

Tune in now to discover how technology is transforming dental care!

Stars Performance โ€“ Unlocking 5-Star Success

How Health Plans Can Improve Quality and Performance

Achieving a 5-Star rating is no small feat, but itโ€™s essential for health plans aiming to deliver high-quality care while maximizing reimbursement. In this episode, we break down the critical factors behind Stars success, from improving member engagement to optimizing HEDIS and CAHPS performance.

Our experts share best practices for navigating CMS guidelines, addressing key challenges in Stars improvement and driving meaningful quality outcomes. If youโ€™re looking to enhance your health planโ€™s Star rating, this conversation provides actionable insights you wonโ€™t want to miss.

Listen now and take your Stars strategy to the next level!

Medicaid Strategy โ€“ Enhancing Access and Efficiency

Innovative Approaches to Medicaid Optimization

Medicaid plays a crucial role in providing healthcare access but navigating its complexities requires strategic expertise. In this episode, we explore how health plans and providers can enhance Medicaid quality, control costs and improve member experiences.

We cover key topics like Medicaid HEDIS optimization, addressing health disparities and integrating new technologies to streamline processes. With rising demands on Medicaid programs, this discussion is essential for healthcare leaders looking to drive innovation and efficiency in Medicaid services.

Tune in to explore cutting-edge strategies for Medicaid success!

The ACA Marketplace โ€“ Whatโ€™s Next?

Navigating Risk Adjustment and Market Trends

The Affordable Care Act (ACA) marketplace continues to evolve and insurers must stay ahead of changing regulations, risk adjustment policies and enrollment trends. This episode takes a deep dive into the challenges and opportunities in the ACA landscape.

Our discussion highlights risk adjustment transfer payments, how insurers can optimize financial performance and the impact of policy shifts on healthcare access. Whether youโ€™re an insurer, policymaker or healthcare leader, this episode unpacks the latest insights shaping the ACA marketplace.

Listen now to stay informed on the future of ACA and risk adjustment!

Critical Regulatory Updates – Medicare Advantage Impacts

Setting the Stage for the 2026 Medicare Advantage Rate Announcement

On April 4th and April 7th, 2025, the Centers for Medicare & Medicaid Services (CMS) released 2026 Medicare Advantage Final Rule and 2026 Final Rate Announcement, respectively. These releases outline critical policy updates and payment adjustments that will shape the present and future of Medicare Advantage plans. The impact of these changes and signals present both a challenge and an opportunity for plans to reassess their strategies and adapt to the new normal.

More than Just the Numbers

CMS finalized a 5.06% increase in Medicare Advantage payments for 2026, amounting to $25 billion in additional plan revenue. Big number. Big headline. But the real story is how CMS continues to evolve its roleโ€”not just as a payer but as a regulator, standard-setter and advocate for Medicare enrollees. It’s not just how much CMS is investing in the Medicare program, itโ€™s also about the standards for how the they expect plans to operate.

Star Ratings and Measure Impacts: Few Changes but Signals for Whatโ€™s to Come

From a Stars perspective, these regulatory updates werenโ€™t the tidal wave that some predicted. There was a notable measure rebrand, formerly the Health Equity Index (HEI). The much-maligned measure has been renamed to Excellent Health Outcomes 4 All (EHO4A). This change is not merely cosmetic but signals CMSโ€™s ongoing commitment to reducing cost to the Medicare Advantage program (the true intention of the Health Equity Index anyway). In addition, the possibility of integrating geography as a social risk factor adds an extra layer of complexity for plans to consider. Plans may soon be required to account for geographic location when measuring and addressing health disparities and outcomes โ€“ a major nod to challenges in rural health. This could have a profound impact on how programs are designed and how quality measures are calculated, especially in communities facing systemic health challenges.

Finally, CMS has established official deadlines for plans to review and dispute data:

  • May 30, 2025 โ€“ CTM data review deadline
  • June 30, 2025 โ€“ Appeals data review deadline
  • May 18, 2026 โ€“ Part D Patient Safety data review deadline (SY2027)
  • March 31, 2026 โ€“ Deadline for all contracts to request a review of 2025 CTM data (SY2027)

With these fixed deadlines for data review, last-minute efforts to improve measure performance may be a challenge due to time constraints. Plans need to be much more proactive and diligent when reviewing their own data and searching for improvement opportunities.

A New Normal: The Need for Innovation in the Evolving CMS Landscape

The changes outlined in the 2026 Medicare Advantage announcements are more than just policy adjustmentsโ€”they are part of a broader shift in the healthcare landscape. With figures like Dr. Oz and RFK Jr. now influencing the conversation, itโ€™s clear that CMS is moving in a direction that prioritizes innovation, positive health outcomes, efficiency and adaptability.

CMS also showed strong interest in AI and operational efficiency, suggesting this administration is open to exploring technologyโ€™s role in modernizing Stars and other quality programs. The emphasis on the Universal Foundation of core measuresโ€”and the potential removal of many operational-style metricsโ€”means plans will also need to focus on clinical outcomes, data capture/interoperability and measurement strategy in areas that matter most.

Plans must take a hard look at how they operate today and prepare to adjust their strategies under this new lens. The healthcare industry is entering a โ€œnew normal,โ€ where the plans that succeed will be those that innovate and respond proactively to emerging trends. Those that fail to adapt risk falling behind in a competitive market. The future of Medicare Advantage will belong to innovators who can navigate this shifting terrain, ensuring that they are providing high-quality, outcomes driven care that meets the evolving needs of beneficiaries.

Conclusion: Building for the Future By Assessing Your Present

The Rate Announcement and Final Rule arenโ€™t just technical documentsโ€”theyโ€™re a glimpse into CMSโ€™s evolving philosophy: tighter guardrails, enhanced beneficiary protections and a firmer hand on program integrity and efficiency. The takeaway should be about building health plan infrastructure that can keep up with the direction that CMS is heading.

So, what should plans be doing now? Weโ€™re entering a summer and fall that will be filled with speculation, potential demonstration programs and policy previews that will shape 2027 and beyond. But 2026 is already definedโ€”and it presents a critical opportunity for health plans to re-evaluate their Stars strategy, challenge current assumptions and reimagine how performance, data and member experience come together. At ProspHire, weโ€™re working with clients to assess Stars readiness from every angle and every functionโ€”clinical workflows, data infrastructure, provider engagement and more. In this moment of change, everything should be on the table: new partnerships, new technologies and bold innovations that improve performance and drive sustainable results.

If your team is looking to get ahead of these changes and set the foundation for long-term success, letโ€™s talk. At ProspHire, we have the experience and expertise in the Medicare Advantage and Stars space and the frameworks for evaluating plans capabilities and Stars potential. The way we approach our assessments of plans is comprehensive and wholistic, understanding that Stars success is about the entire health plan not just one team. Gaining a better understanding of your present, in order to prepare for the future will enable long-term success. Change is hard, but the work we do today will define your outcomes of tomorrow.

Download our Stars Contract Capability Assessment Framework Now!

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