CMS Will End Part D Premium Stabilization After 2026

The Centers for Medicare & Medicaid Services will end a temporary premium stabilization demonstration for stand-alone Medicare Part D plans after the 2026 plan year, potentially bringing more variation in plan premiums for 2027.

CMS announced the change on July 28, 2026, as it released preliminary technical information for 2027. The agency said plan sponsors now have enough experience with the redesigned Part D benefit to operate under traditional market conditions.

What CMS released

CMS reported a preliminary 2027 national average monthly bid amount of $296.05. The amount is an enrollment-weighted average of plan bids for basic Part D benefits and is used to help calculate the federal subsidy paid to plans. It is not the average monthly premium beneficiaries will pay.

CMS also reported a preliminary 2027 base beneficiary premium of $41.33. That figure is a statutory starting point used to calculate a plan-specific basic Part D premium. An enrollee’s actual premium can differ based on the plan, region, coverage design and other circumstances.

The figures released July 28 are not final prices for individual plans. CMS said it will publish the finalized 2027 Medicare Advantage and Part D plan landscape in mid-to-late September, along with final average premiums and other plan information.

Who is most directly affected

The demonstration applies to stand-alone prescription drug plans, often called PDPs. It does not apply in the same way to all Medicare coverage arrangements. Medicare Advantage plans that include drug coverage use a different pricing structure, including plan rebates that can affect the separate premium for drug coverage.

KFF reported that the average monthly premium for stand-alone Part D plans declined from $39 in 2025 to $36 in 2026 while the temporary demonstration was in effect. KFF also reported an average 2026 premium of $8 for the drug portion of Medicare Advantage plans, with many Medicare Advantage enrollees paying no separate drug premium.

Ending the demonstration could lead to greater differences among stand-alone plan premiums in 2027, but CMS has not released enough information to say whether premiums will rise broadly or by how much. Individual plans may move in different directions.

What the 6% cap means

The Inflation Reduction Act’s separate limit on annual increases to the base beneficiary premium remains in place. CMS says the annual increase cannot exceed 6% between 2024 and 2029. Ending the temporary demonstration does not end that cap.

People receiving Extra Help or other low-income assistance may experience changes differently from beneficiaries who pay the full plan premium. Their costs can depend on assistance rules, plan availability and eligibility status.

What beneficiaries should watch

The next major milestone is CMS’s expected September release of final 2027 plan information. During Medicare Open Enrollment, beneficiaries with stand-alone Part D coverage should compare monthly premiums, deductibles, covered drugs, pharmacy networks and cost-sharing rules.

The national figures released in July are useful benchmarks, but they are not a substitute for checking the price and coverage details of an individual plan.

Sources

• Centers for Medicare & Medicaid Services — 2027 Part D bid information
• KFF — Medicare Part D premiums and cost sharing in 2026
• U.S. Government Accountability Office — Premium Stabilization Demonstration