CY 2027 Proposed Rule Rescinds Utilization Management Analysis
December 17, 2025
On November 25, 2025, the Centers for Medicare and Medicaid Services (CMS) issued a proposed rule for Contract Year (CY) 2027 that would revise the Medicare Advantage (MA) Program, Medicare Prescription Drug Benefit Program (Part D), and Medicare Cost Plan Program. The proposed rule rescinds the annual health equity analysis of utilization management (UM) policies and procedures. The health equity analysis requirement, introduced in CMS rules in 2023-2024, made MA plans ensure their UM committees included a person with expertise in health equity. The position was required to conduct an annual health equity analysis of prior authorization and other UM policies/procedures, and ensured plans publicly post the results of those analyses. CMS is also seeking to streamline other parts of the MA program, such as simplifying the quality rating (Star Ratings) system, revising marketing and communications rules, and changing plan enrollment and coverage regulations.

