CMS has announced the conclusion of the Part D Premium Stabilization Demonstration. The program was first implemented in 2025 and designed to stabilize stand-alone prescription drug plan (PDP) premiums during initial implementation of the Inflation Reduction Act of 2022. The demonstration was designed for one year (2025) and at least two subsequent demonstration years.
CMS states its analysis indicates that Part D plan sponsors have had sufficient experience under the redesigned Part D benefit to support their assumptions in developing PDP bids; and, therefore, the Agency will discontinue the demonstration and return the program to operating under traditional market conditions in 2027.
According to a KFF article authored by Juliette Cubanski, expiration of the demonstration program could lead to higher enrollee premiums for Part D plans, although plan-specify premium amounts are not yet known.