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Section C. Annual Percentage Increase in Average Expenditures for Part D Drugs Per Eligible Beneficiary ........................................................................................................94 Section D. Retiree Drug Subsidy Amounts .............................................................................95 Attachment VI. Updates for Part C and D Star Ratings ................................................................96 Section A. Part C and D Star Ratings and Future Measurement Concepts .............................96 Section B. Reminders for 2026 Star Ratings and Beyond .......................................................96 Section C. Measure Updates for 2026 Star Ratings .................................................................98 Section D. Improvement Measures (Part C & D) for the 2026 Star Ratings .........................102 Section E. Categorical Adjustment Index for the 2026 Star Ratings .....................................102 Section F. Extreme and Uncontrollable Circumstances Policy for the 2026 Star Ratings ....102 Section G. Changes to Existing Star Ratings Measures for the 2026 Measurement Year and Beyond ...................................................................................................................106 Section H. Efforts to Simplify and Refocus the Measure Set to Improve the Impact of the Star Ratings Program ...................................................................................................107 Section I. Display Measures ..................................................................................................113 Section J. Retirement of Display Measures ...........................................................................115 Section K. Potential New Measure Concepts and Methodological Enhancements for Future Years .................................................................................................................115 Attachment VII. Economic Information for the CY 2026 Rate Announcement .........................119 Section A. Changes in the Payment Methodology for Medicare Advantage and PACE for CY 2026 ..................................................................................................................119 A1. Medicare Advantage and PACE non-ESRD Ratebook ............................................119 A2. Medicare Advantage and PACE ESRD Ratebooks ..................................................119 A3. CMS-HCC Risk Adjustment Model .........................................................................120 A4. ESRD Risk Adjustment Model .................................................................................120 A5. Frailty Adjustment for FIDE SNPs ...........................................................................120 A6. MA Coding Pattern Difference Adjustment .............................................................120 A7. Part C Normalization ................................................................................................121 Section B. Changes in the Payment Methodology for Medicare Part D for CY 2026 ..........121 B1. Annual Percentage Increase for Part D Parameters ..................................................121 B2. Part D Risk Adjustment Model .................................................................................121 B3. Part D Normalization ................................................................................................121 Attachment VIII. RxHCC Risk Adjustment Factors and Predictive Ratio Tables ......................123 Table VIII-1. 2026 RxHCC Model Relative Factors for Continuing Enrollees (2022/2023 Calibration; HCPCS-based Filtering Logic; Reflects MFPs) ...................123 Table VIII-2. 2026 RxHCC Model Relative Factors for New Enrollees, Non-Low Income (2022/2023 Calibration; HCPCS-based Filtering Logic; Reflects MFPs) ......132 Table VIII-3. 2026 RxHCC Model Relative Factors for New Enrollees, Low Income (2022/2023 Calibration; HCPCS-based Filtering Logic; Reflects MFPs) ...................135