Standalone Medicare Drug Plans Have Fallen to a Record Low of 360 Nationwide, Less Than Half the 709 That Were Available Two Years Ago

The number of standalone Medicare prescription drug plans available for individual enrollment has dropped to 360 nationwide for 2026, down from 464 in 2025 and 709 in 2024, according to a KFF analysis of CMS data. The 2026 count represents the fewest standalone Part D plans since the benefit launched in 2006, cutting the shopping pool for approximately 24 million non-employer beneficiaries who use standalone plans rather than bundling drug coverage with Medicare Advantage.

The decline reflects sustained financial pressure on plan sponsors. The Part D benefit redesign under the Inflation Reduction Act shifted more catastrophic-phase costs onto plan sponsors, making standalone drug plans less profitable in many markets. Some carriers exited the business entirely, and others collapsed multiple offerings into single products. The Part D Premium Stabilization Demonstration, which provided additional federal subsidies to standalone plan sponsors to keep premiums from spiking in the initial years after redesign, helped slow the pace of exits, but CMS announced in late July 2026 that it will end that demonstration after this year.

For consumers, fewer standalone plans can mean a narrower selection of formularies, cost-sharing structures, and preferred pharmacy networks. The effect is uneven across geographies: in some counties, beneficiaries who qualify for low-income subsidies have very few zero-premium choices, and a smaller overall pool reduces competitive pressure on premiums.

CMS has said it expects zero-premium plans to remain available for low-income enrollees nationally for 2027, but the full 2027 Part D plan landscape will not be released until mid-to-late September. Beneficiaries will need to compare available options carefully during the October 15 to December 7 enrollment period.