The Medicare Part D market is facing an “uncertain future,” according to an analysis from KFF published July 16.
The future of the Part D market depends on whether CMS extends the Part D premium stabilization program put in place in 2025, according to KFF. The program is intended to mitigate premium increases caused by new out-of-pocket spending caps.
Here are five things to know:
- The number of Part D standalone plans has declined in recent years. In 2025, Medicare beneficiaries could choose between 14 PDP plans on average, down from 30 in 2021.
- The number of Part D plans available shrunk significantly from 709 in 2024 to 464 in 2025.
- Medicare beneficiaries in rural and rural-adjacent areas are more likely to enroll in Part D plans than those in urban areas.
- The Congressional Budget Office estimates that the premium stabilization program will cost $5 billion in 2025.
- The Trump administration is expected to announce if the premium demonstration program will continue, and what the parameters will be, at the end of July, according to KFF.
Read the full report here.
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