Goodsurance

Drug prices & Part D

KFF Projects Three in Four Standalone Part D Enrollees Will Pay Higher Premiums in 2027 Once the Stabilization Subsidy Expires

A KFF analysis puts concrete numbers on what the end of the Part D Premium Stabilization Demonstration means for the roughly 25 million people in standalone drug plans, projecting most will face a premium increase and nearly half could see hikes of 11 to 20 dollars per month.

By the Goodsurance editorial teamJuly 27, 2026

A KFF analysis published in late July 2026 quantified the likely premium impact of CMS's July 28 decision to end the Medicare Part D Premium Stabilization Demonstration after the 2026 plan year. KFF found that approximately 75 percent of the roughly 25 million people enrolled in standalone prescription drug plans are expected to pay a higher monthly premium in 2027 than in 2026. About 45 percent of that group may see increases in the range of 11 to 20 dollars per month.

The demonstration had reduced standalone Part D plan premiums by an average of 16 dollars per month in 2026. Without that subsidy, plan sponsors will need to reflect their full costs in their 2027 bids, pushing premiums upward for most enrollees. CMS has confirmed the 2027 base beneficiary premium, which serves as the starting point for all plan-specific Part D premium calculations, will rise to 41.33 dollars, up from 38.99 dollars in 2026, an increase of roughly 6 percent and the maximum allowed under the Inflation Reduction Act through 2029.

KFF noted that plan-specific premiums can vary substantially above the base rate and that the full 2027 landscape of plans and their actual costs will not be available until mid to late September. Beneficiaries who want to compare options and potentially switch to a lower-cost plan have the annual enrollment period, which runs from October 15 through December 7, to do so.

In plain words

A research group called KFF looked at how the end of a Medicare drug plan support payment will affect people's monthly bills in 2027. It found that about 75 out of 100 people in standalone Part D drug plans can expect to pay more next year. About 45 out of 100 could see their premium go up by between 11 and 20 dollars a month.

This is happening because Medicare is ending a program that paid plans about 16 dollars per person per month to keep premiums lower. That support ends after December 2026.

The base starting premium for Part D plans will rise to 41.33 dollars in 2027, up from 38.99 dollars this year. You will not know what your specific plan will cost until September, when the 2027 plan list is published. You can compare and switch plans between October 15 and December 7.

Understand the basics first

Source: KFF
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