CMS Boosts Medicare Advantage and Part D, Caps Drug Costs

CMS finalized 2025 payment updates for Medicare Advantage and Medicare Part D programs to increase payments by 3.7% ($16B) from 2024 to 2025
Projected $500B-$600B in Medicare Advantage payments to private health plans in 2025
Finalized Part D redesign to lower drug costs for millions, capping annual out-of-pocket costs at $2,000 in 2025
Payment updates incorporate latest fee-for-service payment data to improve accuracy
Guidance finalized on new $2,000 Part D out-of-pocket cap for 2025 enacted under Inflation Reduction Act