Ending the Part D Premium Stabilization Demonstration after 2026

On July 28, 2026, CMS announced it will discontinue the Part D Premium Stabilization Demonstration — a Biden-era program of roughly $9.8 billion in 2025–26 subsidies for standalone Medicare drug-plan premiums — at the end of plan year 2026, returning Part D to “traditional market conditions” in 2027.

Dr. Mehmet Oz defended the decision as fiscal discipline. “We are stabilizing the market so this bailout is no longer needed,” he said, and he posted that “The Biden admin gave BILLIONS of taxpayer money DIRECTLY to Big Insurance Companies,” according to the coverage.

Critics — including MedPAC, KFF-affiliated analysts, and Democrats — warned that many of the roughly 25 million Part D enrollees could see premium increases in 2027; the administration estimated about 45% face increases of $11–$20 per month. CMS also set the 2027 base beneficiary premium at $41.33.

Timeline

• July 28, 2026 — CMS announces the Part D Premium Stabilization Demonstration will end after plan year 2026; Oz calls it a “bailout” and says, “We are stabilizing the market so this bailout is no longer needed.” (WSJ; Healthcare Finance News)
• 2027 — Administration estimates ~45% of enrollees face $11–$20/month premium increases; 2027 base beneficiary premium set at $41.33. (Healthcare Finance News)