2024 Health Meeting - Session 9F: Changing Tides—Part D Cash Flows and Risk Scores 2024+ 6.26.24 Recording

Among the many impacts of the Inflation Reduction Act’s redesign of Medicare Part D will be a change in Part D cash flows. Plan sponsors have always had to balance the seasonality of prescription drug costs against reimbursement at various times from monthly subsidies, risk score true-up payments, rebates, manufacturer contributions, and CMS settlements, but the IRA is changing the pattern of cash flows in 2024, 2025, and beyond. Moreover, the risk-adjusted portion of CMS revenue is likely to grow in 2025, even as the Part D risk score model changes. Attendees will learn the magnitude and direction of the changes to cash flows and risk scores. They will consider methods of monitoring emerging experience, making financial forecasts, and improving their risk-adjusted revenue, now that the past may not be a good guide to the future.