What CMS announced
CMS created the voluntary demonstration for standalone prescription drug plans in 2025 while plans adjusted to major changes in the Part D benefit. After reviewing 2027 bids, CMS announced that the additional demonstration will end after 2026.
CMS also released two national technical figures for 2027:
- The national average monthly bid amount is $296.05.
- The national base beneficiary premium is $41.33.
The $41.33 figure is a statutory starting point used in program calculations. It is not the monthly premium for every plan or every person.
What is not ending
Medicare Part D
Medicare prescription drug coverage continues. The announcement concerns an additional temporary demonstration for participating standalone plans.
Extra Help
Extra Help is a separate Medicare program for people with limited income and resources. It can help with Part D premiums, deductibles, coinsurance and other drug costs. The CMS announcement does not say Extra Help is ending.
The statutory base-premium protection
CMS states that annual growth in the national base beneficiary premium is capped at no more than 6% from 2024 through 2029. That statutory calculation is separate from the temporary demonstration.
Does this mean your premium will rise?
CMS expects finalized 2027 Medicare Advantage and Part D plan information and final average premiums in mid-to-late September. When those details arrive, avoid evaluating a plan by premium alone. A lower premium can still produce higher total costs if prescriptions move to less favorable tiers, a pharmacy loses preferred status, or coverage rules affect access.
Seven things to review this fall
- Every current prescription, including exact name, dosage and frequency.
- Whether each prescription appears on the plan's formulary.
- The tier and expected cost for each prescription.
- Deductibles and other cost sharing.
- Preferred and in-network pharmacy status.
- Prior authorization, step therapy and quantity limits.
- Estimated total annual cost—not just the monthly premium.
Keep prescription and health information private. Use only an appropriate secure process if you choose to share it for assistance.
A useful caregiver question
Use the plan's Annual Notice of Change, finalized Medicare plan information and current medication needs. General averages and national technical amounts do not replace an individual comparison.
When coverage can be reviewed
Medicare Open Enrollment runs from October 15 through December 7. Changes made during that period generally take effect January 1, provided the plan receives the enrollment request by December 7. Some people may have other opportunities to change coverage; confirm the applicable rule using current official guidance.