CMS ends Medicare Part D premium stabilization demonstration

On July 28, CMS released the 2027 National Average Monthly Bid Amount (NAMBA) and base beneficiary premium, which reflects the average of Part D plan bids and premiums, respectively, for basic Part D benefits for the upcoming 2027 plan year. The NAMBA will increase by 24%, marking the third consecutive year of large increases (20%+) following implementation of the Inflation Reduction Act.

CMS also announced it will discontinue the voluntary Part D Premium Stabilization Demonstration for standalone Prescription Drug Plans (PDPs) at the end of 2026. Based on its analysis of 2027 bids, CMS explains that “Part D plan sponsors had sufficient experience under the redesigned Part D benefit to support their assumptions in developing the prescription drug plan bids.” A Trump administration official told the media that approximately 45% of Medicare Part D beneficiaries are expected to see monthly premium increases in the $11 to $20 range in 2027.

Relatedly, on July 29, the Congressional Budget Office (CBO) responded to a request from House GOP Chairmen Jodey Arrington (R-TX), Jason Smith (R-MO), and Brett Guthrie (R-KY) to explain its updated projections stating that it has revised its projections with evidence now indicating that drug price negotiation, inflation rebates, and the Part D redesign would increase deficits over the 2022-2031 period, as the redesign is substantially more expensive and negotiation and rebate savings are smaller than projected.