Medicare | Value-Based Care | 2026 updates | The CMS Brief
The CMS Brief (October 2026): Key Developments Shaping Value-based Care
The CMS Brief (October 2026): Quality Accountability, Administrative Simplification, and Expanding Access to Care
Every month, CMS releases dozens of announcements, policy updates, proposed rules, and operational guidance documents. Some generate headlines. Others quietly signal where healthcare policy, payment reform, and value-based care may be heading next.
The CMS Brief helps accountable care organizations, value-based care participants, healthcare technology companies, provider groups, and industry stakeholders quickly understand the CMS developments most likely to affect the healthcare landscape.
Here's what happened in October.
CMS Releases 2027 Medicare Advantage Star Ratings, Raising the Stakes for Quality Performance
CMS released its 2027 Medicare Advantage and Part D Star Ratings, revealing that approximately 37% of Medicare Advantage prescription drug contracts earned four stars or higher. Enrollment-weighted results show that roughly 71% of enrollees are currently in contracts receiving at least four stars.
The updated ratings also introduce new medication safety measures, including concurrent opioid and benzodiazepine use and multiple anticholinergic medications in older adults. The ratings will influence 2028 Medicare Advantage quality bonus payments.
Why It Matters: Quality performance remains a significant financial consideration for Medicare Advantage organizations. For providers and care management teams, the updated measures reinforce the importance of medication management, preventive care, patient engagement, and coordinated clinical interventions. Organizations that can consistently identify care gaps, support medication adherence, and document outcomes will be better positioned to contribute to their health plan partners' quality improvement efforts.
CMS Proposes Medicare Advantage Reforms to Improve Provider Directory Accuracy and Transparency
CMS issued a proposed rule intended to improve the accuracy of Medicare Advantage provider directories, strengthen pharmacy benefit manager (PBM) transparency, and expand financial protections for low-income Medicare beneficiaries.
The proposed changes address the reliability of provider network information, an important consideration for patients navigating Medicare Advantage coverage and accessing participating providers.
Why It Matters: Accurate provider information is essential to effective care coordination. Outdated or incorrect directories can complicate referrals, delay access to specialists, and create unnecessary administrative work for care teams. More reliable provider data could help Medicare Advantage organizations and participating practices connect patients with appropriate services more efficiently.
CMS Advances Electronic Prior Authorization to Reduce Administrative Burden
CMS and the Department of Labor announced that five major employers have endorsed expanding electronic prior authorization to self-funded employer health plans.
The initiative aims to replace manual processes involving faxes, phone calls, and paperwork with more efficient electronic workflows. This is an employer-supported initiative, not a newly finalized federal mandate.
Why It Matters: Administrative inefficiencies can delay patient care and consume valuable clinical resources. Expanding electronic prior authorization could help providers spend less time navigating coverage requirements, speed access to medically necessary services, and dedicate more resources to direct patient care.
CMS Advances Rural Healthcare Transformation Through New Technology and Care Delivery Investments
CMS announced new Rural Health Transformation Program investments across multiple states, including more than $17 million for expanded behavioral health and addiction treatment services in North Carolina and $209 million for rural healthcare initiatives in Iowa.
The investments support initiatives such as mobile crisis response, expanded access to specialty care, maternal telehealth, healthcare workforce development, and improved health information sharing. These announcements follow a September 30 commitment of $20 million toward rural telehealth and healthcare technology modernization in North Carolina.
Why It Matters: Rural healthcare organizations often face limited staffing, geographic barriers, and inadequate technology infrastructure. These investments create opportunities to strengthen care coordination, expand virtual care, and deliver more consistent patient support without relying exclusively on traditional in-person services. For rural providers, technology-enabled care may support more sustainable ways to manage chronic conditions and improve access.
Looking Ahead
As we head into November, we'll be watching for the release of the CY 2027 Medicare Physician Fee Schedule Final Rule, which is expected to bring important updates to Medicare reimbursement, care management services, and the Medicare Shared Savings Program.
We'll also be tracking additional Medicare Advantage policy developments, continued investments in rural healthcare transformation, and new initiatives to improve care coordination and advance value-based payment models.
We'll be back next month with another edition of The CMS Brief.
