Federal support that lowered premiums for certain stand-alone plans will end Dec. 31. What beneficiaries pay will depend on their plan and location.
By Hola America
Monthly premiums for some stand-alone Medicare Part D drug plans could increase in January 2027. A federal program that helped control those costs for two years will end Dec. 31.
However, the program’s expiration will not eliminate Medicare prescription drug coverage. It also does not mean every enrollee will face the same increase. What each person pays will depend on their plan, selected coverage and location.
The Part D Premium Stabilization Demonstration began in 2025 under the Biden administration. It was designed to prevent sharp premium increases after Medicare’s prescription drug benefit was restructured.
President Donald Trump’s administration maintains that insurers now have enough experience with the redesigned benefit. Therefore, it says they can calculate plan costs without the additional federal support.
The program lowered monthly premiums by up to $10 in 2026
Participation was voluntary and limited to stand-alone prescription drug plans, commonly known as PDPs. In 2025, participating plans received a monthly premium reduction of up to $15. The program also capped annual increases in a plan’s total monthly premium at $35.
For 2026, the monthly reduction fell to a maximum of $10. Meanwhile, the permitted year-over-year premium increase rose to $50. Both protections will expire at the end of 2026.
About 24.9 million people were enrolled in stand-alone Medicare Part D plans in 2026, according to KFF. However, that figure does not represent the exact number of beneficiaries who will pay more in 2027. Premiums and plan terms vary.
Medicare Advantage plans that include prescription drug coverage were not part of the stabilization program. About 31.4 million people received Part D benefits through those plans in 2026.
The national base premium will rise by $2.34 per month
The national base beneficiary premium for Medicare Part D will increase from $38.99 in 2026 to $41.33 in 2027. That amounts to an additional $2.34 per month.
However, the national figure is only a starting point for calculating plan-specific premiums. It may not match the amount an individual beneficiary pays.
The Inflation Reduction Act limits annual increases in the national base premium to 6% through 2029. Still, an individual plan’s premium could rise by more. Insurers also consider costs, benefits and service areas when setting prices.
Centers for Medicare & Medicaid Services Administrator Mehmet Oz said most beneficiaries will see increases of less than $10 per month. He also said some people could find lower premiums.
For now, that estimate cannot be confirmed for individual plans. Finalized plan options and average premiums are expected between mid- and late September. Until then, beneficiaries will not know exactly how much their coverage will cost in 2027.
Other federal health policy changes have also raised concerns among families across the Midwest. Omaha residents and health care professionals previously gathered to discuss changes and proposed cuts affecting Medicaid and Medicare.
Medicare open enrollment begins Oct. 15
Medicare open enrollment will run from Oct. 15 through Dec. 7. During that period, people with Original Medicare can keep, change or enroll in a prescription drug plan for 2027. Their selected coverage will begin Jan. 1.
The official Medicare Plan Compare tool allows beneficiaries to search by ZIP code. They can compare premiums, deductibles, covered medications and prices at different pharmacies.
Once plan-specific prices become available, beneficiaries should compare the total cost of coverage. The monthly premium is important, but deductibles and prescription costs can also affect annual expenses.
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