With More Subsidy Upfront, Part D Average Bid Will Rise 180% in 2025

  • Aug 01, 2024

    Following an unprecedented year-over-year increase in 2024 stemming from provisions in the Inflation Reduction Act (IRA), the Medicare Part D national average monthly bid amount (NAMBA) is projected to increase by $115, or nearly 180%, to $179.45 in 2025. That number reflects big changes to the Part D benefit, such as the government passing more risk to Prescription Drug Plan (PDP) and Medicare Advantage Prescription Drug (MA-PD) sponsors, but it doesn’t mean the full bump in estimated costs will be passed onto consumers. At the same time, the federal government on July 29 unveiled a new demonstration opportunity for PDPs intended to provide additional premium stability across the Part D market.

    The NAMBA — an enrollment-weighted average of the estimated cost to Part D plan sponsors of providing the basic benefit package — was always expected to increase because of benefit changes taking effect next year; it was just a question of how much higher it would be.

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  • Lauren Flynn Kelly

    Lauren has been covering health business issues since the early 2000s and specializes in in-depth reporting on Medicare Advantage, managed Medicaid and Medicare Part D. She also possesses a deep understanding of the complex world of pharmacy benefit management, having written AIS Health’s Radar on Drug Benefits from 2004 to 2005 and again from 2011 to 2016. In addition to her role as managing editor of Radar on Medicare Advantage, she oversees AIS Health’s publications and manages the health editorial staff. She graduated from Vassar College with a B.A. in English.

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