The Centers for Medicare & Medicaid Services (CMS) announced the parameters that will guide calendar year (CY) 2027 individual and state costs for the Medicare Part D drug benefit. CMS projects a 9.37% increase in per capita Part D expenditures. After accounting for prior-year revisions, the annual increase is 13.65%, the highest adjusted percentage increase since the program’s inception. The increase reflects continued growth in high-cost specialty and diabetic medications.
FFIS estimates that CY 2027 clawbacks will cost states $23.2 billion, a 13.7% ($2.8 billion) increase from CY 2026.