CMS will increase Medicare Part D premiums in 2026 while continuing a scaled-back version of its premium stabilization program launched last year.
On July 28, the agency said it took “unprecedented” steps to reject standalone Medicare drug plan bids with steep year-over-year premium increases or reduced benefits, marking the first time it has exercised full authority to deny such bids.
Six notes:
1. In 2026, the national average monthly bid amount will be $239.27, compared to $179.45 last year.
2. In 2026, the base premium will be $38.99, compared to $36.78 last year.
3. CMS will release its overview of available MA and Part D plans for 2026 in September, along with final average MA and Part D premiums.
4. In 2025, the Biden administration launched the voluntary premium stabilization program to help make Medicare drug plan premiums more stable and predictable for beneficiaries. The program tested whether limiting large price increases and giving plans more flexibility would ease the transition under new IRA benefit rules. It included a $15 reduction in the base premium and capped annual premium increases at $35. The Congressional Budget Office estimates that the premium stabilization program will cost $5 billion in 2025.
5. In 2026, CMS is continuing the program but will lower the premium discount from $15 to $10, allowing plans to raise premiums by up to $50 instead of $35, and removing the tighter financial protections (risk corridors) that had been in place.
6. Only standalone drug plan sponsors that participated in 2025 can join again in 2026, with a few exceptions. New plans from existing participants or brand-new sponsors entering the market in 2026 are allowed to join. Sponsors must notify CMS of their intent to participate by Aug. 4.
