Medicare Part D Isn’t Ending, But Agents and Beneficiaries Should Pay Attention
There has been some confusion about what is happening with Medicare Part D in 2027. Let’s clear up the biggest point first.
Medicare Part D is not going away.
What is ending is the temporary Part D Premium Stabilization Demonstration, a federal program that helped limit premium increases for stand-alone Part D prescription drug plans. CMS has announced that the program will end after 2026.
That may sound like a small change, but it could have an impact on both Medicare beneficiaries and the agents who serve them.
What is Actually Ending?
Everyone probably remembers that the Premium Stabilization Demonstration was created during the rollout of major Part D changes under the Inflation Reduction Act.
In 2025, participating stand-alone Part D plans received a $15 reduction in the premium calculation, along with a $35 limit on year-over-year premium increases. In 2026, that support dropped to $10 and the increase limit moved to $50.
For 2027, that temporary assistance goes away. In essence, the federal government is no longer subsidizing the premium costs to beneficiaries.
This does not mean Medicare Part D coverage is ending. It means stand-alone Part D plans will return to more traditional market conditions without this additional temporary support.
What Could Beneficiaries See?
The biggest thing beneficiaries should watch is their monthly premium.
Without the temporary stabilization program, some stand-alone Part D plans could have higher premiums or greater differences in price from one plan to another. That does not mean every beneficiary will see a large increase. In fact, CMS has indicated that most beneficiaries are expected to see relatively modest changes, and some could even pay less. Final 2027 plan premiums and options will be available October 1st to discuss with beneficiaries.
There are other changes to watch as well. The standard Part D deductible increases from $615 in 2026 to $700 in 2027, and the annual out-of-pocket threshold increases from $2,100 to $2,400.
The good news is that the out-of-pocket protection created by the Inflation Reduction Act remains. Extra Help, also known as the Low-Income Subsidy or LIS, also continues.
What This Means for Medicare Agents
For agents, this could make the 2027 AEP Part D review more important than ever. As we already see Medicare Supplement costs increase, those same clients that also have a stand along part d could see further impacts to their healthcare costs.
Clients who have stayed in the same prescription drug plan for years may need a closer look this year. Premium changes are only one part of that review. Agents should also be looking at formularies, deductibles, copays, pharmacy networks, and the total estimated annual cost based on the medications a client actually takes.
It also creates an education opportunity.
Some beneficiaries may hear that a “Part D subsidy is ending” and assume their drug coverage or Extra Help is going away. Agents can help separate the headlines from what is actually happening.
The conversation can be pretty simple:
Your Part D coverage is not going away, but your plan and costs could change for 2027, so we need to review your options.
The Bottom Line
Medicare Part D is not ending. Extra Help is not ending. The out-of-pocket protection is not ending.
What is ending is a temporary federal program designed to help stabilize stand-alone Part D premiums.
For beneficiaries, that makes reviewing 2027 coverage important. For Medicare agents, it makes a complete Part D review during AEP even more valuable.
Sometimes the biggest opportunity an agent has to help a client is simply making sure they understand what is changing, what isn’t, and what they should do next.
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Bob Brzyski
Vice President of Marketing
