CMS Increases the Medicare Advantage Gift Limit

In a December 7 ruling, the Office of Inspector General (OIG) decided that the allowable annual aggregate value of nominal gifts* that a Medicare health plan can give to prospective or existing Medicare beneficiaries is $75.

CMS agreed and increased the Medicare Advantage limit from $50 to $75 per year, effective immediately. This change will be reflected in next year’s release of the Medicare Marketing Guidelines.

*At any one time, health plans may continue to offer gifts to potential enrollees as long as such gifts are of nominal value and are provided whether or not the individual enrolls in the plan. Nominal value currently is defined as an item worth $15 or less, based on the retail purchase price of the item regardless of the actual cost.