CMS Ends Medicare Part D Premium Subsidy Program, Potentially Raising 2027 Costs

CMS is terminating the Part D Premium Stabilization Demonstration, a subsidy program that has helped limit premium increases for stand-alone Prescription Drug Plans (PDPs). The change is set for the 2027 plan year. Analysts warn this could lead to larger premium hikes for some beneficiaries next year, shifting more out-of-pocket costs to patients. This economic shift may increase patient sensitivity to drug costs and co-pays, potentially affecting medication adherence and leading to more patient questions about affordability at the point of care. Practice financial counseling and front-desk staff should be prepared for these inquiries as the 2027 Annual Election Period approaches this fall.