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14 April 2025

CMS issues CY 2026 Medicare Advantage and Part D rate announcement, Part D redesign program instructions

On April 8, the Centers for Medicare & Medicaid Services (CMS) issued the Calendar Year (CY) 2026 Medicare Advantage (MA) and Part D Rate Announcement, which includes a 5.06% payment bump, on average, for MA plans in CY 2026. CMS estimated the rate increase would amount to a more than $25 billion increase in overall payments for CY 2026, when compared with CY 2025.

CMS also released Part D Redesign Program Instructions, providing additional detail regarding implementation of the Inflation Reduction Act's (IRA) Part D drug benefit changes, including the establishment of the selected drug subsidy program.

Additional information is also available in the attached WCEY Alert.

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Attachment

CY 2026 Medicare Advantage and Part D rate announcement

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Contact Information

For additional information concerning this Alert, please contact:

Washington Council Ernst & Young

Document ID: 2025-0891

 

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