Large stock
A notable change is coming for Medicare Part D beneficiaries in 2027.
The Centers for Medicare & Medicaid Services (CMS) will end the temporary Part D premium stabilization demonstration after 2026. This short-term subsidy helped insurers with stand-alone Part D plans maintain more stable premiums during the rollout of the new spending cap created under the Inflation Reduction Act (IRA).
With the end of the program, insurers will set premiums for 2027 without additional federal support, meaning prices will once again reflect standard market conditions.
Premiums can vary widely, CMS reports. Part D enrollees may see premium increases of less than $10 per month, or even a decrease, while others may experience larger changes based on their plan costs and coverage decisions.
What does not change for 2027
Annual spending ceiling: The cap remains in place and continues to adjust annually based on drug cost inflation – set at $2,000 in 2025, $2,100 in 2026 and $2,400 in 2027. This limit includes deductibles, copayments and coinsurance for drugs covered by Part D. It does not include monthly premiums, as drugs are not listed on a drug’s formulary. plan, the GLP-1 transition program, or drugs billed under Medicare Parts A or B.
Insulin costs: Any insulin covered by Part D will continue to be capped at $35 per month.
Drug price negotiations: The Medicare negotiation program continues to expand. Ten negotiated prices came into effect in 2026, and 15 additional drugs will benefit from negotiated prices in 2027.
Prescription payment plan: This option remains available, allowing enrollees to spread their drug costs evenly over the year instead of paying large amounts up front.
What beneficiaries should do now
Read your Annual Change Notice (ACNO). Plans send this letter every September. It outlines your premium, deductible, and drug coverage updates for 2027. Reviewing it is the first step in deciding if your plan still meets your needs.
Compare plans during open enrollment (October 15 – December 7). Use Medicare.gov or your state’s Senior Health Insurance Assistance Program (SHIP) for personalized comparisons. Although premiums are significant, factors such as formulary coverage, drug placement, and preferred pharmacy networks often have a greater impact on the total annual cost. A plan with a slightly higher premium can still save you money if it covers your medications more efficiently.
Check your eligibility for additional assistance. If you have limited income, Extra Help can pay most or all of the Part D premium and significantly reduce cost sharing. Apply to the Social Security Administration.
Consider the Medicare prescription payment plan. If you typically incur high drug costs at the beginning of the year, this option allows you to spread those expenses into predictable monthly payments. This doesn’t reduce what you owe, but it can help you avoid high bills in January.
Support Resources
Medicare.gov is the official U.S. government site that provides information about Medicare, including tools to compare plans, coverage and costs.
National Health Insurance Assistance Programs (SHIP) provides free, unbiased Medicare counseling through trained counselors. Visit shiphelp.org to find the phone number and website for your state.
Joy Miller is a Family and Community Wellness Extension Agent with K-State Extension in Johnson County, an Accredited Financial Counselor, and a Certified Senior Health Insurance Advisor for Kansans, supporting individuals and families through health and financial wellness education.
Gn bussni
