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Millions of Medicare beneficiaries who get prescription drug coverage through standalone Part D plans are preparing for another change in their monthly premiums in 2027. CMS Administrator Mehmet Oz has said premiums will rise by less than $10 for most Medicare recipients and that many beneficiaries could see lower premiums, but administration officials told The Wall Street Journal that only about a quarter of enrollees are projected to see premiums stay flat or decrease. CMS is ending a temporary premium stabilization program after 2026, making the upcoming plan year an important one for beneficiaries comparing coverage and costs.
A Temporary Medicare Subsidy Is Ending
The Medicare Part D Premium Stabilization Demonstration was introduced for standalone prescription drug plans in 2025 after major changes to the Part D benefit under the Inflation Reduction Act. The program was designed to reduce premium volatility while insurers adjusted to the redesigned benefit, but CMS says its review of 2027 bids found that insurers now have enough experience to price plans without the additional federal support. The demonstration will therefore end after the 2026 plan year and the Part D market will return to traditional conditions in 2027.
About 25 Million People Rely on Standalone Part D Plans
Nearly 25 million Americans were enrolled in standalone Medicare Part D drug plans in 2026, according to data cited by Reuters. These plans are generally used by people with traditional Medicare who obtain prescription coverage separately rather than through a Medicare Advantage plan that bundles medical and drug benefits. Because the subsidy ending in 2026 applied to standalone plans, those beneficiaries are the group most directly affected by the change.
CMS Says Many Beneficiaries Will Still Have Affordable Options
CMS says its 2027 bid analysis indicates that the Part D market has stabilized enough for insurers to operate without the temporary demonstration. The agency says beneficiaries affected by the previous program will continue to have access to affordable plan choices, while a CMS spokesperson told FactCheck.org that more than 85% of beneficiaries in the roughly quarter of enrollees affected by the demonstration will have access to a plan that is either lower cost or less than $10 more expensive next year. That figure refers to available plan options and does not necessarily mean those beneficiaries can remain in their current plans without a premium increase.
The 2027 Base Premium Will Be $41.33
CMS has announced that the national base beneficiary premium for Part D will be $41.33 in 2027. That figure is used as a starting point for calculating plan-specific basic Part D premiums, so it does not mean every beneficiary will pay exactly $41.33 each month. Federal law also limits annual increases in the national base beneficiary premium to no more than 6% through 2029 under the Inflation Reduction Act’s premium stabilization provision.
Premiums Can Vary From One Plan to Another
The national base premium is only one part of the calculation, because actual Part D premiums vary according to the specific plan a beneficiary chooses. Medicare.gov notes that drug-plan premiums can change each year and that beneficiaries may also face additional amounts based on income. For that reason, a national figure or average does not necessarily predict what an individual senior will pay in 2027.
The Part D Benefit Has Changed in Recent Years
The premium stabilization program was created after the Inflation Reduction Act significantly changed Medicare’s prescription drug benefit, including the introduction of a $2,000 annual out-of-pocket limit in 2025. The limit was increased to $2,100 in 2026 and is scheduled to rise again in 2027, while other changes have also altered how insurers and beneficiaries share prescription drug costs. CMS says insurers now have sufficient experience with the redesigned benefit to develop their 2027 bids without the temporary stabilization demonstration.
Seniors Will Need to Compare Plans Carefully
The most important number for an individual beneficiary will be the premium and coverage offered by the specific plan available in their area, rather than the national average alone. CMS plans to release the final 2027 Medicare Advantage and Part D plan landscape and premium information in September, ahead of Medicare’s annual enrollment period. Beneficiaries should compare premiums, covered medications, deductibles, pharmacies and other out-of-pocket costs before deciding whether their existing plan still meets their needs.
Open Enrollment Will Provide a Chance to Make Changes
Medicare’s annual enrollment period gives beneficiaries an opportunity to review their coverage and make changes for the following year. The final 2027 plan information will allow seniors to see how their current plan compares with alternatives once premiums, formularies and other details are finalized. Reviewing those options is particularly important this year because the temporary Part D premium stabilization program will no longer be holding down premiums in the same way.
What Seniors Should Know Before 2027
The 2027 Medicare drug-premium picture is more complicated than the message that many seniors will see lower costs, because administration officials also expect only about one-quarter of affected enrollees to have premiums that remain flat or decrease. CMS says the market has adjusted sufficiently to end the temporary subsidy, while independent observers have raised questions about how individual beneficiaries will experience the change once specific plans and premiums are finalized. For seniors, the clearest way to understand the impact will be to review their individual 2027 plan notice and compare available Part D options before enrollment decisions are made.