Part D and RPPO Benchmark Announcement 08-14-2008

DATE: August 14, 2008 NOTE TO: Medicare Advantage Organizations, Medicare Prescription Drug Plan Sponsors, and Other Interested Parties SUBJECT: Release of the 2009 Part D National Average Monthly Bid Amount, the Medicare Part D Base Beneficiary Premium, the Part D Regional Low-Income Premium Subsidy Amounts, and the Medicare Advantage Regional PPO Benchmarks We are releasing the Medicare Part D national average monthly bid amount for 2009 and the associated base beneficiary premium. We are also announcing the Part D regional low-income premium subsidy amounts applicable in 2009. Finally, we are releasing the Medicare Advantage (MA) regional benchmarks for 2009. Below we describe the determination of these amounts. The regional low-income premium subsidy amounts and the regional MA benchmarks can be downloaded from the CMS web site at: http://www.cms.hhs.gov/MedicareAdvtgSpecRateStats/RSD/list.asp#TopOfPage Part D National Average Monthly Bid Amount In accordance with section 1860D-13(a)(4) of the Social Security Act (“the Act”), codified in 42 CFR §423.279 CMS has calculated the national average monthly bid amount for 2009. For each coverage year, CMS computes the national average monthly bid amount from the applicable Part D plan bid submissions in order to calculate the base beneficiary premium, as provided in 42 CFR §423.286(c). The national average monthly bid amount is a weighted average of the standardized bid amounts for each ...