Page 94

94

𝑃𝑟𝑜𝑗𝑒𝑐𝑡𝑒𝑑 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 2025 𝐶𝑃𝐼 𝐴𝑐𝑡𝑢𝑎𝑙 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 2024 𝐶𝑃𝐼 = $322.60 $315.30 = 1.0233 (Source: President’s FY2026 Budget and Bureau of Labor Statistics, Department of Labor) The CY 2026 benefit parameters reflect the CY 2025 annual percentage trend in the September CPI of 2.33 percent, as well as a -0.17 percent multiplicative correction for the revision to last year’s estimate. The CY 2025 annual percentage trend in the CPI can be found in Table V-5 below. Table V-5. Cumulative Annual Percentage Increase in September CPI Annual percentage trend for September 2025 2.33% Prior year revisions -0.17% Annual percentage increase for 2026 2.16% Note: Percentages are multiplicative, not additive. Values are carried to additional decimal places and may not agree to the rounded values presented above. Section C. Annual Percentage Increase in Average Expenditures for Part D Drugs Per Eligible Beneficiary Section 1860D-2(b)(6) of the Act defines the API as “the annual percentage increase in average per capita aggregate expenditures for covered Part D drugs in the United States for Part D eligible individuals, as determined by the Secretary for the 12-month period ending in July of the previous year using such methods as the Secretary shall specify.” The following defined standard Part D prescription drug benefit parameters are updated using the “annual percentage increase”: For CY 2026, the defined standard deductible amount is updated by multiplying the 2025 amount of $590 by the 2026 API and rounding to the nearest multiple of $5. Under section 1860D-2(b)(4)(B) of the Act, for CY 2026, the annual OOP threshold is updated by multiplying the CY 2025 amount of $2,000 by the 2026 API and rounding to the nearest multiple of $50.