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For the past two years, a temporary federal program has been paying stand-alone Medicare drug plans to keep premium increases smaller than they otherwise would have been. CMS has confirmed that program ends after this year.
That means some Part D premiums will jump more for 2027 than they have in recent years. Not every plan will move the same amount, and you won't see your own plan's exact new price until plan-level numbers come out in September. Start watching now so October doesn't catch you flat-footed.
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Name your current drug coverage
The subsidy ending affects stand-alone plans most directly.
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Prepare short, specific Medicare or Social Security questions before your next call.
Why Premiums Are Moving This Year
The program ending is called the Part D Premium Stabilization Demonstration. CMS created it in 2024 to smooth out premium swings while stand-alone drug plans adjusted to the redesigned Part D benefit under the Inflation Reduction Act, including the new $2,000 annual out-of-pocket cap. It cost roughly $9.8 billion in federal subsidies across 2025 and 2026.
CMS says plan sponsors now have enough experience under the redesigned benefit that the program is no longer needed, so Part D returns to normal market pricing for 2027. That's the official reason. The practical result is that some stand-alone plan premiums will rise more than they would have with the subsidy still in place.
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When You'll Actually Know Your New Price
CMS won't publish exact plan-level 2027 premiums until mid-to-late September 2026. Anything you read before then, including this article, is describing the trend, not your specific number. Your own plan is required to mail you an Annual Notice of Change letter by the end of September with your real price.
Once that letter arrives, you have a defined window to act. Waiting past it means your current plan renews automatically, whether or not the new premium still works for your budget.
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Read it the week it comes, not the week before enrollment ends.
Compare your plan against others at Medicare.gov using your actual drug list.
You can switch plans starting today through December 7.
Whatever plan you're in on this date is your plan for January 1.
Compare Before You Let Anything Auto-Renew
The premium change won't hit every plan evenly. A stand-alone Part D plan that relied heavily on the ending subsidy could see a larger jump than a Medicare Advantage plan that bundles drug coverage differently. That's exactly why comparing by plan, not by headline, matters this year more than most.
If your current plan's new premium or formulary no longer fits, switching during Open Enrollment is free and takes effect January 1. If you like your plan even with the increase, that's a fine outcome too, as long as you checked instead of assumed.
Choose your next move
Where do you stand right now?
Pick the option closest to your plan, and revisit it once your Annual Notice of Change arrives.
You'll use the Plan Finder once your letter arrives.
For a fuller picture of what you'll owe across all of Medicare, not just drug coverage, read The Exact Numbers Behind Your 2026 Medicare Costs.
Get Ready to Call If Something Looks Wrong
If your new premium jumps far more than the trend you're reading about here, or your formulary drops a drug you rely on, that's worth a call, not a shrug. Write down who you spoke to and when. It's the single habit that saves the most time if you need to escalate later.
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Save your plan
Save what you found so you have it in hand when your notice arrives.
Common questions
Why are Medicare Part D premiums going up for 2027?
CMS is ending the Part D Premium Stabilization Demonstration, a temporary program that paid stand-alone drug plans to keep premium increases smaller while they adjusted to the Inflation Reduction Act's redesigned Part D benefit. Without that subsidy, some stand-alone plans will raise premiums more for 2027 than they have in recent years. The effect will be uneven across plans.
When will I know my exact 2027 Medicare Part D premium?
CMS won't publish plan-level 2027 premiums until mid-to-late September 2026. Your own plan is required to mail you an Annual Notice of Change letter by the end of September with your specific new price, deductible, and formulary changes. Anything published before that describes the overall trend, not your number.
When does Medicare Open Enrollment start for 2027 coverage?
Open Enrollment runs October 15 through December 7. Any plan changes you make take effect January 1. Whatever plan you're enrolled in on December 7 becomes your coverage for the new year, so compare before that date if your premium or formulary changed.
What should I do if my new Part D premium seems too high?
Compare your plan against others using the Medicare Plan Finder once your Annual Notice of Change arrives, entering your actual medications. If something still looks wrong, call 1-800-MEDICARE or your plan directly, and write down who you spoke to, when, and any reference number they give you. A local SHIP counselor can also help you compare options for free.
