Medicare will end the federal program that has been holding down premiums for standalone prescription drug plans since 2025, the Centers for Medicare and Medicaid Services announced on Tuesday, returning the market to what the agency calls traditional conditions in 2027.
The CMS fact sheet says plan sponsors now have sufficient experience under the redesigned benefit to price their own bids without the extra support, and that the Part D Premium Stabilization Demonstration will conclude at the end of 2026 in order to "return the program to operating under traditional market conditions."
