Overview
- The Centers for Medicare & Medicaid Services announced on July 28 that it will conclude the Part D premium‑stabilization demonstration after the 2026 plan year and will not renew the subsidy for 2027.
- The program provided about $3.6 billion in 2026 and roughly $9.8 billion across 2025–26 to help lower premiums for nearly 25 million stand‑alone Part D enrollees.
- CMS Administrator Mehmet Oz defended the move as ending a bailout to insurers, while a Trump administration estimate said about 25% of enrollees could see no change or lower premiums, about 30% could face increases under $10 per month, and about 45% could face $11–$20 monthly increases.
- Analysts and advisory bodies say the temporary subsidy materially cut premiums—MedPAC estimates roughly a 40% drop in 2025 and 27% in 2026—and warn ending it could push some beneficiaries into Medicare Advantage or raise out‑of‑pocket costs.
- Final consumer impacts will be revealed when CMS publishes 2027 plan bids and premiums in September and beneficiaries can compare or switch plans during open enrollment from Oct. 15 to Dec. 7.