Regulatory NewsBREAK: CMS Announces National Average Monthly Bid Amount and Conclusion of the Part D Premium Stabilization Demonstration

On July 28, 2026, the Centers for Medicare & Medicaid Services (CMS) announced the Calendar Year (CY) 2027 Part D national average monthly bid amount is $296.05, the Part D base beneficiary premium is $41.33, and the de minimis amount is $2.

CMS also announced the end of the Part D Premium Stabilization Demonstration, which was a voluntary demonstration for standalone prescription drug plans (PDPs) implemented in CY 2025 to address volatility and variation in standalone premiums following changes mandated by the Inflation Reduction Act (IRA).  

• The goal of the demonstration, as originally described in the 2024 Announcement, was to test whether additional policy changes stabilize year-over-year changes in premiums for participating standalone PDPs, leading to more predictable options for beneficiaries during the initial implementation of the IRA benefit improvements, creating more gradual enrollment changes, and allowing participating Part D sponsors to accumulate the experience necessary for bidding in future years.
• The demonstration provided extra subsidies to PDP sponsors (and, by extension, enrollees) by reducing the base beneficiary premium (used in the calculation of individual plan premiums) and capping the year-over-year increase in the monthly premium.  
• CMS explained that bid analysis indicated that Part D plan sponsors had sufficient experience under the redesigned Part D benefit to support their assumptions in developing plan bids.  
• Effective Date: end of CY 2026, intended to return the program to traditional market conditions in CY 2027.

CMS will release final 2027 Medicare Advantage and Part D premiums and ​plan details in September. 

More on This Topic: 

• Announcement
• Fact Sheet
• 2024 Announcement

For questions, please reach out to Geni Tunstall.