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August 1, 2024
CMS released the Part D National Average Monthly Bid Amount and Other Part C & D Bid Information on July 29, 2024 via HPMS memo.
The average beneficiary premium next year will be $55.98, which is a $16.63 (+42%) increase from this year’s average beneficiary. This premium is also $23.34 (+71%) higher than the average beneficiary premium in 2023.
For the risk score calculation, these are capped out at 6% increases so the base beneficiary premium that will be used for risk scores will be $36.78 (not the $55.98).
The average bid amount skyrocketed to $179.45 (+179%), which was expected with all the IRA provision and benefit enhancements. The difference between the premium and the base beneficiary premium would result in the sponsor’s direct subsidy premium payment. If CMS used the true base beneficiary premium of $55.98, the average direct subsidy premium would be $123.47. However, with the cap applied and using $36.78, the average direct subsidy premium will be $142.67 next year. Due to the IRA cap on the base beneficiary premium, plans are going to get an additional $19.20 PMPM.
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