CAHC has been highlighting Part C and D market instability for most of 2024. The authors of the Inflation Reduction Act said costs would go down, but changes made by the law have produced higher premiums (21.5 percent average in 2024), fewer plan choices, and increased cost sharing. We anticipate more of the same in 2025. CMS saw the same trends, and on July 29, 2024 announced steps to address market instability that will shore up standalone Part D markets by spending much more taxpayer dollars through a questionable demonstration program that effectively re-writes the law. This issue and relevant questions are outlined here.
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