Washington, DC -- October 26, 2026: Millions of Medicare beneficiaries will face new or higher monthly prescription insurance premiums in 2027 as the Trump administration ends a temporary program that helped hold down costs for standalone drug plans.
Some people keeping their current plans face premium increases of $600 to more than $1,200 annually, according to an analysis of federal plan data by KFF, an independent health policy research organization.
Medicare Part D Itself is Not Ending. Part D helps pay for prescription medications. The change affects a temporary program supporting standalone prescription drug plans, which people generally purchase alongside Original Medicare.
What is Being Removed
The Trump administration is ending extra funding that helped keep Medicare prescription drug premiums down, along with a limit on annual premium increases for participating plans. Removing that limit allows insurers to make bigger increases.
The program, called the Part D Premium Stabilization Demonstration, ends Dec. 31, 2026. Its protections will no longer apply to 2027 coverage. A separate federal restriction on increases to Medicare’s national base premium remains, but that figure is a starting point for calculations—not a cap on what an individual plan can charge.
What People Will Pay
KFF found that approximately 4 million people without low-income subsidies who paid no monthly premium for standalone drug coverage in 2026 will have to pay one in 2027, even if they switch standalone plans.
Members of AARP Medicare Rx Preferred face monthly premium increases of at least $50 in every state and Washington, D.C. Increases exceed $75 in 37 states and $100 in four states. AARP Medicare Rx Saver premiums increase by at least $50 monthly in 33 states.
These are insurance premiums, paid before prescription copays and deductibles.
Why the National Average Falls Short
The Centers for Medicare & Medicaid Services projects the average standalone Part D premium will increase from $35.09 monthly in 2026 to $36 in 2027.
That national projection does not describe what every person will pay to keep an existing plan. Some plans have decreases or modest increases; others have substantially larger increases.
KFF identifies the loss of the program’s protections as a factor in the changes, while noting that not every increase can be attributed to its termination.
What Western North Carolina Residents Should Review
Residents should compare their plan’s total annual cost, including premiums, deductibles and prescription expenses. A cheaper monthly premium does not necessarily mean cheaper coverage for the medicines someone takes.
The subsidy change concerns standalone drug plans. People receiving prescription coverage through Medicare Advantage should review their own plan notices for changes.
Medicare’s annual open enrollment period runs through Dec. 7, 2026, for coverage beginning in January. Beneficiaries can call 1-800-MEDICARE for assistance comparing plans. Those with limited income and resources may qualify for Extra Help, which assists with prescription coverage costs.
Sources
KFF: “Many Medicare Part D Stand-Alone Drug Plan Enrollees Will See Modest Premium Increases for 2027, But Others Could Pay Much More If They Don’t Switch Plans,” Oct. 2, 2026. www.kff.org
Centers for Medicare & Medicaid Services: “Medicare Part D 2027 National Average Monthly Bid Amount Information,” July 28, 2026. CMS
Centers for Medicare & Medicaid Services: “Medicare Advantage and Medicare Prescription Drug Programs Expected to Remain Stable in 2027,” Sept. 28, 202