Overview
- CMS announced this week that the temporary Part D Premium Stabilization Demonstration will end after the 2026 plan year, removing federal payments that kept many stand‑alone drug premiums lower for 2025–26.
- Federal estimates show the demonstration cut average stand‑alone premiums by about $26 in 2025 and $16 in 2026 while costing roughly $9.8 billion over two years.
- CMS Administrator Mehmet Oz called the program a bailout for insurers and said most enrollees would pay less than $10 more per month in 2027, but independent analysts warn plan‑by‑plan effects are not yet known.
- People who buy stand‑alone Part D plans are most exposed because the subsidy did not meaningfully lower drug costs inside Medicare Advantage, widening the premium gap between the two options.
- Beneficiaries should watch for final 2027 plan bids and Annual Notices of Change in mid‑to‑late September and compare plans during open enrollment from October 15 to December 7 to avoid unexpected cost increases.