Overview
- The Centers for Medicare & Medicaid Services announced in late July 2026 that the premium-stabilization demonstration will end after the 2026 plan year and will not continue into 2027.
- The two-year program delivered about $9.8 billion to Part D plans in 2025–2026 and corresponded with big cuts in average premiums, according to federal watchdogs and policy groups.
- CMS Administrator Mehmet Oz defended the move, saying insurers have enough experience to price plans and asserting most beneficiaries will see increases under $10 per month.
- An unnamed administration projection shared with reporters estimates about 25% of standalone Part D enrollees would see no increase or a decline, roughly 30% would face increases under $10, and about 45% would face increases of $11–$20.
- Final, plan-level 2027 bids and beneficiary premium notices will be published in September, and analysts warn the change could push some seniors to switch plans or to Medicare Advantage as higher specialty drug use and IRA rule changes continue to pressure costs.