CMS has posted the 2013 Medicare Advantage (MA) and Medicare prescription drug program (Part D) Advance Notice and the draft Call Letter. The call letter outlines applicable ACA requirements, revisions to payment methodologies, and other policy and operational process updates for Part C organizations and Part D sponsors. In addition to setting forth payment data, CMS is proposing guidance addressing, among other things: authority to deny bids based on significant increases in beneficiary costs; reducing the Part D coverage gap; Part D and MA plan quality provisions; drug utilization management provisions intended to address overprescribing and overutilization of certain medications; and clarification of the definition of certain supplemental benefits. Comments on the proposed Advance Notice and draft Call Letter will be accepted until March 2, 2012. The final 2013 Rate Announcement and Call Letter will be published April 2, 2012.