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2026 and PDPs will have some experience with the 2025 changes that will help inform their 2026 bids, CMS anticipates that the factors contributing to the design and magnitude of the CY 2025 demonstration parameters will be significantly mitigated for CY 2026. CMS will take these factors into account in determining the appropriate level of additional premium stabilization and/or narrowed risk corridors for participating PDPs in CY 2026 if necessary to continue to stabilize premiums. We also remind Part D plan sponsors that, per section 1860D–11 of the Act, the Secretary has the authority to negotiate the terms and conditions of proposed bids and does not have to accept any or every Part D bid submitted. Following the submission of bids for CY 2026, CMS will announce any additional premium stabilization and narrowed risk corridors no later than the annual release of the National Average Monthly Bid Amount (NAMBA), Part D base beneficiary premium (BBP), and related Part D bid information in the summer of 2025. Retiree Drug Subsidy Amounts: As discussed in the CY 2026 Advance Notice, we will use the same methodology as in prior years to update the cost threshold and cost limit for qualified retiree prescription drug plans.
/ s / John Brooks Chief Policy and Regulatory Officer & Deputy Administrator
I, Jennifer Wuggazer Lazio, am a Member of the American Academy of Actuaries. I meet the Qualification Standards of the American Academy of Actuaries to render the actuarial opinion contained in this Rate Announcement. My opinion is limited to the following sections of this Rate Announcement: The growth percentages and United States per capita cost estimates provided and discussed in Attachments I, II and III; the qualifying county determination, calculations of Fee-for-Service cost, direct graduate medical education carve-out, kidney acquisition cost carve-out, IME phase out, MA benchmarks, EGWP rates, and ESRD rates discussed in Attachment III; the Medicare Part D Benefit Parameters: Annual Adjustments for Defined Standard Benefit in 2026 described in Attachments IV and V; and the economic information contained in Attachment VII. / s / Jennifer Wuggazer Lazio, F.S.A., M.A.A.A. Director Parts C & D Actuarial Group Office of the Actuary Attachments