CMS Finalizes Payment Updates for 2025 Medicare Advantage and Medicare Part D Programs

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CMS Finalizes Payment Updates for 2025 Medicare Advantage and Medicare Part D Programs
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Finalized policies will continue to ensure the strength and stability of Medicare Advantage and Medicare Part D programs

Today, the Centers for Medicare & Medicaid Services finalized the Calendar Year 2025 Rate Announcement for the Medicare Advantage and Medicare Part D Prescription Drug Programs that updates payment policies for these programs and ensures payment accuracy. The Rate Announcement complements policies in the CY 2025 MA and Part Dthat would strengthen protections for the millions of people who rely on MA and Medicare Part D prescription drug coverage, which will be finalized in the coming days.

“Thanks to the President's lower cost prescription drug law, the Inflation Reduction Act, millions of people with Medicare Part D will see even lower costs next year. Your out-of-pocket costs for prescription drugs will be limited to no more than $2,000, keeping more of your money in your pocket,” said HHS Secretary Xavier Becerra. “In addition to improving the Part D drug benefit, we are updating payments to Medicare managed care plans for people who rely on these plans.

The Rate Announcement finalizes annual updates to MA payment growth rates and changes to the MA and Part D payment methodologies to improve payment accuracy.

https://www.cms.gov/medicare/payment/medicare-advantage-rates-statistics/announcements-and-documents/2025

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