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On April 1, the Centers for Medicare & Medicaid Services (CMS) announced the Calendar Year (CY) 2025 Medicare Advantage (MA) Capitation Rates and Part C and Part D Payment Policies. Under this CY 2025 Rate Announcement,  payments from the government to MA plans are expected to increase on average by 3.7 percent, or over $16 billion, from 2024 to 2025. The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025. Additionally, CMS released the Final CY 2025 Part D Redesign Program Instructions which contain a detailed description of, and guidance related to, changes made by the Inflation Reduction Act of 2022, as well as other information. Additionally, CMS seeks input from the public regarding how best to meet the shared goals of enhancing data capabilities to have better insight into our programs, consider areas to increase MA data transparency, and propose future rulemaking.

Comments on the request for information are due May 29th

For more information, see the 2025 Medicare Advantage and Part D Rate Announcement fact sheet and the Final CY 2025 Part D Redesign Program Instructions fact sheet.