CY27 Proposed Rule Highlights: Regulatory Considerations for Member Communications
By Kelly Altmann, Vice President of Member Communications, Imagenet
CMS published the Contract Year 2027 (CY27) Proposed Rule—formally titled Policy and Technical Changes to the Medicare Advantage Program, Medicare Prescription Drug Benefit Program, and Medicare Cost Plan Program—in the Federal Register on November 28, 2025. As with all proposed rules, the provisions outlined are subject to public comment and may be finalized with or without modification later this year.
Several aspects of the CY27 Proposed Rule signify potential future changes in member communications, including notice requirements, standardized mailing statements, and translation thresholds. While the rule applies specifically to Medicare Advantage and Part D programs, it offers insight into broader CMS direction around simplifying communications, reducing member “notice fatigue,” and clarifying compliance expectations.
In this blog, we provide an overview of:
Key CY27 Proposed Rule provisions and requests for information that may impact member communications
Requests for information on proposed changes related to mailing statements and notice requirements
CMS considerations around translation thresholds and language access
Practical implications health plans should begin evaluating
Mid-Year Supplemental Benefits Notice
The CY27 Proposed Rule proposes rescinding the requirement for plans to provide members with a mid-year notice of unused supplemental benefits. This had been introduced as a new member communication requirement for 2026; however, in September 2025, CMS suspended its enforcement to “address logistical concerns and reevaluate current requirements.” If finalized, plans would instead continue using existing materials—such as the Evidence of Coverage (EOC), Summary of Benefits (SB), and Annual Notice of Change (ANOC)—as the primary vehicles for communicating benefit information.
This change reflects CMS’s broader effort to streamline member communications and reduce unnecessary or duplicative notices.
Mailing Statement Requirements
Current State
Mailing statements are standardized verbiage that must be included on certain member communications, such as enrollment packets, marketing materials, or required notices sent by Medicare Advantage and Part D plans. These statements typically include required language related to plan features, member rights, or disclaimers and are intended to ensure consistent, clear communications.
Elimination of Certain Mailing Statement Requirements
The CY27 Proposed Rule includes a request for information related to the elimination of specific mailing statement requirements under 42 CFR §§422.2267(e)(36) and 422.2267(e)(37). These include standardized statements related to:
Availability of free language assistance services
Disclaimers about plan limitations or features and promotional giveaways
Other regulatory disclosures CMS has determined to be duplicative or of limited value to members
Rationale for the Proposed Change
CMS aims to reduce administrative burden, simplify communications, and allow plans to focus on delivering clearer, more relevant information to members.
What Will Remain
Plans would still be required to include other regulatory disclosures and comply with applicable federal requirements related to non-discrimination, language access, and member rights. The proposed elimination applies only to specific mailing statement requirements and does not remove broader compliance obligations.
Practical Implications for Member Communications
From an operational standpoint, fewer overlapping requirements may reduce compliance risk by lowering the likelihood that a required statement is omitted or misplaced. Plans would still need to maintain appropriate oversight to ensure all remaining regulatory requirements are met.
5% Translation Threshold
Current Requirement
Under current rules, Medicare Advantage and Part D plans must translate all “required materials”—including, but not limited to EOCs, ANOCs, SBs, and marketing materials—into any non-English language that is the primary language of at least 5% of individuals in a plan benefit package service area. This requirement is intended to ensure meaningful access for members with limited English proficiency.
Re-Examination of the Threshold
CMS is seeking feedback on whether the 5% threshold should be modified. While the request for information provides no additional information, we would expect commenters to explore whether alternative thresholds, methodologies, or a more targeted focus on “vital” documents could better balance access, clarity, and operational efficiency.
Clarifying Translation Expectations
Clarifying which materials are subject to translation requirements would align CMS expectations more closely with other directives coming out of the current administration. This alignment is intended to reduce administrative burden and conflicting goals across agencies.
Implications for Planning and Operations
If translation requirements are narrowed or clarified in the future, plans may see cost savings related to translation and printing, as well as improved clarity around compliance expectations. At the same time, ensuring that critical documents remain accessible in members’ preferred languages will continue to be essential for member understanding and satisfaction.
Plans may need to review and update translation workflows, vendor relationships, and quality assurance processes to align with any finalized changes.
Preparing for Potential CY27 Changes
The CY27 Proposed Rule is not yet final, but it provides an early view into how CMS is evaluating member communications requirements for the future—particularly around simplification, clarity, and regulatory alignment. While compliance obligations will ultimately depend on the final rule, these proposals and requests for information signal potential shifts that could affect communication design, translation practices, and operational workflows.
As health plans prepare communications for 2027 and beyond, monitoring the final rules and related guidance will be critical. In the meantime, plans may want to assess current templates, processes, and governance models to understand where flexibility may emerge, and where updates may be required as regulatory changes emerge.
Are your member communications prepared for potential CY27 changes?
Proposed CMS updates could affect how notices are structured, translated, and delivered. Connect with our experts to ensure your member communications strategy is ready for 2027 and beyond.