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One free scan finds every outdated or missing driver and matches the right update for your exact hardware.Free scan · exact hardware matchCMS projected lower average Medicare drug-plan premiums for 2026 even after reducing temporary premium support. That forecast did not mean every enrollee’s bill would stay the same. The temporary Part D Premium Stabilization Demonstration ends after 2026, and whether a particular person pays more in 2027 will depend on the plans available to them and the coverage they choose.
What happened to Medicare drug plan premiums in 2026?
In September 2025, the Centers for Medicare & Medicaid Services (CMS) projected that the average monthly total premium for a standalone Part D plan would be $34.50 in 2026, down from $38.31 in 2025. For Medicare Advantage plans that include drug coverage, CMS projected an average Part D total premium after Medicare Advantage rebates of $11.50, down from $13.32.
These are national averages, not quoted prices or promises for any individual plan. A person’s actual premium and total drug costs depend on the plan they select and its coverage and cost sharing. CMS Administrator Mehmet Oz urged beneficiaries in September 2025 to compare options during Open Enrollment and choose coverage that fits their needs and budget. CMS’s 2026 premium announcement
What does the Part D subsidy loss mean?
“Subsidy loss” refers to the end, after contract year 2026, of the temporary Part D Premium Stabilization Demonstration for standalone prescription drug plans. It does not mean that all Medicare support for Part D is ending. CMS introduced the demonstration in 2025 amid premium volatility and variation following the Inflation Reduction Act’s redesign of the Part D benefit.
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For 2026, CMS reduced the demonstration’s support: the uniform reduction to the base beneficiary premium went from $15 to $10, while the maximum year-over-year increase limit for a plan’s total premium rose from $35 to $50. CMS also removed the demonstration’s narrowed risk corridor thresholds. The agency said the reduced stabilization would facilitate a return to regular market conditions. CMS’s 2026 bid and demonstration parameters
Will my Medicare drug plan premium go up in 2027?
It is not yet possible to infer an individual’s 2027 premium from national figures alone. CMS announced on July 28, 2026, that the demonstration would end after 2026, saying plan sponsors had gained enough experience with the redesigned benefit to submit bids under traditional market conditions. The announcement gave national figures, not the final price of every plan or the amount any particular enrollee would pay. CMS said final averages and plan information would be issued with the annual landscape. CMS’s 2027 bid information
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CMS set the 2027 national base beneficiary premium at $41.33. This is a starting point used to calculate a plan-specific basic premium, not a universal monthly charge. CMS also reported a preliminary 2027 national average monthly bid amount of $296.05, which is used to calculate the government subsidy to plans; it is not an enrollee’s premium. Neither figure determines what a particular plan will charge.
Does the 6% cap limit every plan’s premium increase?
No. The Inflation Reduction Act separately limits annual growth in the national base beneficiary premium to 6% for 2024 through 2029. That cap applies to the national base beneficiary premium, not to the total premium of every individual Part D plan. It is also distinct from the demonstration’s 2026 $10 base-premium reduction and $50 limit on a plan’s year-over-year total premium increase.
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What did the demonstration change for beneficiaries?
GAO’s February 2026 report estimated that the demonstration cost $9.8 billion across 2025 and 2026, based on information from CMS officials. GAO also modeled a scenario in which beneficiaries stayed in the same 2024 standalone plans in 2025 without the demonstration: in that counterfactual, average premiums would have nearly doubled, and 37% would have faced increases greater than $40. Those are modeled outcomes, not observed premium changes for all beneficiaries.
For beneficiaries not eligible for the low-income subsidy, GAO reported average standalone premiums of $42 in 2024 and $43 in 2025 under the demonstration. GAO cautioned that further evaluation is needed to determine how much of the premium change was caused by the demonstration rather than other factors. GAO’s report on the demonstration
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How to compare Medicare drug plans
Compare the coverage and expected costs of specific plans using your own prescriptions and preferred pharmacies. Medicare’s official Medicare Plan Finder can help you review available options. Use Medicare Plan Finder
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- Check that each medication is covered on the plan’s formulary, and review any rules or restrictions that apply.
- Confirm that your preferred pharmacies are in the plan’s network.
- Compare the monthly premium alongside the deductible and your cost sharing for the medicines you use; a lower premium alone does not establish which plan will cost you less overall.
- If you may qualify for Extra Help, review whether the program can reduce your Part D premiums and other costs.
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