Issue Brief 24-10
May 20, 2024

The Centers for Medicare & Medicaid Services (CMS) announced the parameters that will guide calendar year (CY) 2025 individual and state costs for the Medicare Part D drug benefit. CMS projects a 5.46% increase in per capita Part D expenditures. However, after accounting for prior-year revisions, the annual increase is 8.58%.

FFIS estimates that CY 2025 clawbacks will cost states $20.1 billion, a 9% ($1.7 billion) increase from CY 2024.