On April 5, 2010, CMS released the final 2011 Call Letter for MA and Part D plans, along with the capitation rates for Medicare Advantage plans for 2011, which reflect certain PPACA and Reconciliation Act provisions. Most notably, as required by the Reconciliation Act, the MA capitation rates for 2011 are the same as the capitation rates for 2010. Moreover, as mandated by the PPACA, CMS will calculate government Part D premium subsidies for low-income beneficiaries using plans’ basic Part D premiums before the premiums are reduced by Part C rebates. CMS also includes a brief discussion of the PPACA and Reconciliation Act provisions that begin to close the Part D coverage gap in 2011, including the manufacturer discount program, and the effect of these provisions on plans’ Part D bids. Other changes to the Advance Notice and draft Call Letter address the methodology that will be used account for the predicted costs of full risk enrollees in chronic care special needs plan; reimbursement for clinical trial services; and reassignment of low-income beneficiaries.