How the End of VBID Reshapes Part D and Supplemental Benefits
This paper is part three of Wakely’s The Value Shift series, which examines how evolving policy and market forces are reshaping value in Medicare Advantage. The sunset of the Medicare Advantage VBID Model at the end of 2025 eliminated key flexibilities that plans used to target benefit design based on chronic conditions, low-income status, and/or area deprivation index. Using Wakely’s WMACAT and SMART tools, this analysis evaluates how plans adjusted 2026 benefit designs in response, balancing affordability with member disruption.
Overall, plans clearly attempted to retain elements of VBID‑era benefit designs, but the loss of targeted flexibilities limited what could be sustained. While some flexibilities still exist in 2026, benefits became more standardized, less generous, and less targeted. The dominant theme is one of retrenchment: plans recalibrated benefit offerings to fit within narrower regulatory boundaries, reflecting a more cost‑disciplined approach to value amid IRA pressures and tightening margins.
