CMS is implementing a voluntary demonstration program designed to test policy changes to stabilize premiums year to year for Medicare Part D enrollees.
The demonstration aims to stabilize prices for enrollees while the most significant changes to the Part D program since its creation in 2006 are implemented, according to a CMS fact sheet published July 29.
In 2025, several provisions in the Inflation Reduction Act will take effect. Prescription drug costs for Medicare beneficiaries will be capped at $2,000 annually, and beneficiaries will be able to spread the costs of expensive drugs in smaller payments throughout the year.
Here are five things to know:
- Participation in the premium stabilization program is voluntary for plans. Insurers have until Aug. 5 to inform CMS if they will elect to participate.
- Plans participating in the demonstration will reduce base beneficiary premiums by $15 for 2025. If a $15 reduction results in the plan premium being less than $0, the plan will have no premium cost.
- For subsequent years, plans cannot raise premiums by more than $35.
- CMS will change risk corridors for plans participating in the demonstration. The government will take on more risk for potential losses, according to CMS's fact sheet.
- The demonstration will last for three years. If plans do not choose to participate in 2025, they cannot participate in the demonstration in subsequent years.
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