Possible changes to Medicare Part D reinsurance programs

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By Nicholas Johnson | 12 March 2015
The Medicare Payment Advisory Committee (MedPAC) has previously suggested changes to the risk-sharing program. But several factors—the current state of the Part D market, recent attempts to curtail Medicare spending, and large increases in reinsurance payments—may increase the likelihood that MedPAC and the Centers for Medicare and Medicaid Services will implement changes to Part D. Putting these changes in place will not necessarily result in decreased program spending and could cause an increase in the prevalence of private-sector reinsurance in the Part D market.