The Medicare Part D program is on the verge of massive change due to passage of the Inflation Reduction Act. In 2025, a new Part D benefit design will materially affect costs by stakeholder. We analyzed the impact of the redesign using Milliman’s Part D Consolidated Database to assess the changes in plan liability and risk for plan sponsors.

This white paper explores risk and cost profile changes for various stakeholders, both in aggregate and specific to certain populations, and discusses possible risk mitigation strategies for plan sponsors after the Part D benefit redesign is fully implemented in 2025.