CMS Announces 2025 Medicare Advantage and Part D Payment Rates

In finalizing changes to payment policies for these programs, the Centers for Medicare & Medicaid Services (CMS) estimates an increase in Medicare Advantage plan revenues by an average 3.7 percent, or over $16 billion, from 2024 to 2025. The notice implements changes to the Part C risk adjustment model finalized in the CY 2024 final rule. The changes will be phased in over a three-year period. CMS also finalized technical updates to the Part C and D star ratings and will implement changes to the standard Part D drug benefit required by the Inflation Reduction Act of 2022. This includes capping annual out-of-pocket costs for people with Medicare Part D at $2,000 in 2025. Finally, CMS reminds stakeholders the agency seeks public input on Medicare Advantage Data – comment by May 29.

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