CMS Releases 2025 Medicare Part D Bid Information and Announces Premium Stabilization Demonst

[Duaine]

Some updated info:

[EXTERNAL LINK] - What to Know About Medicare Part D Premiums | KFF

 

[kgmom219]

She won't bite . . . unless you are talking through your butt (which some agents do). If you know your stuff she can be quite pleasant.

But she doesn’t suffer fools gladly, either. (Thanks Saint Paul!). Or oversized egos. And there are quite a few around here.

You aren’t a random client. You have background in this arena.

So….either DM me (I am going to ask who you are!) or don’t.

For the record, I’m KGMom219 on many platforms, including X.

 

[Midlevel]

Some updated info:

[EXTERNAL LINK] - What to Know About Medicare Part D Premiums | KFF

In simpler terms, we have an election coming up and don’t want a bunch of pissed off Seniors so we are gonna throw millions towards the Part D program. Yes, that is the most political I will ever get.

 

[Duaine]

CMS strives to stabilize 2025 Medicare Part D premiums.

What we do know about 2025 Medicare drug plan premiums:

• 2025 National Average Monthly Bid amount - 280% increase
  
  The 2025 national average monthly Medicare Part D bid amount (NAMBA) increased 280% to $179.45 from the 2024 national average monthly bid of $64.28. As noted by CMS, "[t]he national average monthly bid amount is [an enrollee] weighted average of the standardized bid amounts for each stand-alone prescription drug plan (PDP) and MA plan with prescription drug coverage (MA-PD)".
  
  With regard to the 280% increase in the 2025 NAMBA, CMS noted:

“[T]he [national average monthly 2025 Medicare Part D bid amount (NAMBA)] in 2025 looks different than in recent years because of the Part D benefit design changes. Importantly, the amount of increase in the NAMBA does not mean that Part D premiums will increase by a similar amount. A significant portion of the NAMBA increase represents funds moving from reinsurance payments to upfront payments in the form of the government subsidy to plans. The preliminary estimated average government subsidy to plans will be $142.67 in 2025.” [emphasis added]

CMS went on to further explain:

"This [280% NAMBA] increase is in line with expectations due to the redesign of the program that encourages better cost management of the Part D benefit by Part D sponsors through a larger risk-adjusted government Part D subsidy payment upfront rather than cost reconciliation on the back end based on beneficiary costs (i.e., reinsurance payments). Importantly, the amount of increase in the NAMBA does not mean that Part D premiums will increase by a similar amount. A significant portion of the NAMBA increase represents funds moving from reinsurance payments to upfront payments in the form of the government subsidy to plans."

As a comparison to last year, in July 2023, CMS calculated the 2024 average monthly Medicare Part D bid amount as $64.28 - an 85% increase over the 2023 average monthly bid of $34.71.

[EXTERNAL LINK] - CMS strives to stabilize 2025 Medicare Part D premiums.