Medicare Ends Part D Premium Subsidy Program

For 2027, the Centers for Medicare & Medicaid Services (CMS) is ending the Medicare Part D Premium Stabilization Demonstration that was implemented in calendar year (CY) 2025 for standalone prescription drug plans (PDPs) while the plans adapted to changes in the Part D benefit under the Inflation Reduction Act (IRA). The IRA changes included a $2,000 cap on out-of-pocket drug spending for Part D enrollees and shifting more costs to Part D plan sponsors. CMS was concerned that the changes would force standalone PDP sponsors to raise premiums to an unaffordable level for beneficiaries, who would then . . .