You have probably seen the scary headline: "the government is ending a Medicare subsidy," or worse. Here is the honest version, because the panic is overblown — but there is something you should check before December 7. For the last two years a temporary federal program helped hold down premiums on participating standalone Medicare Part D drug plans. It ends after 2026. For 2027, the national base premium that plan prices are built on rises to $41.33 a month — and no, that is not necessarily what your own plan will charge. Below: what actually ended, whether your premium really goes up, the protections that did not go away, who is shielded, and the one window that lets you shop your way out of an increase. Every figure is sourced at the end.
What actually ended — a temporary demo, not "Medicare"
Back in 2025, Medicare started a temporary program called the Part D Premium Stabilization Demonstration — a voluntary program for standalone drug plans. It did two quiet favors: it knocked a chunk off the national base premium that plan prices are built on, and it capped how much a plan's monthly premium could rise in a single year. It was always temporary, and CMS is letting it expire at the end of 2026, so 2027 returns to normal market pricing. So no — the government did not "cancel Medicare" or "kill your drug coverage." A two-year cushion is coming off standalone plans; that is the real story. Your first move is to find out if this even applies to you: check whether your coverage is a standalone Part D plan or a Medicare Advantage plan that includes drug coverage — the plan name is on your member card and your Annual Notice of Change.
How the cushion was already shrinking
The help was fading for two years before it ended. In 2025, the first year, the demo cut the base premium by $15 and capped a plan's monthly increase at $35. In 2026 it was scaled back — $10 off the base and the cap loosened to $50. In 2027, both of those supports end entirely. So the support was already tapering; next year it is simply gone.
Does your premium actually go up?
Here is the honest answer, including the part most videos skip. The national base premium — the number every plan's price is built on — is set at $41.33 for 2027. During the demonstration, CMS projected the average standalone drug-plan premium to fall, from about $38.31 in 2025 to about $34.50 in 2026. With that extra support gone, some standalone plans may charge more in 2027 — but the exact premium for your plan is not public yet, plans move by different amounts, and Medicare Advantage drug coverage is a separate market. So your first action: when your plan's Annual Notice of Change arrives, around September, find the 2027 premium and deductible and compare them to what you pay now. That is how you learn whether this affects you at all.
The protections that did not disappear
This is the part the panic headlines leave out. The subsidy that ended was temporary; the permanent protections written into the Inflation Reduction Act are still in force in 2027. Three of them. First, Part D still has an annual out-of-pocket cap — it is indexed, so it rises each year; in 2026 it was $2,100, and it goes up again for 2027. Once your covered Part D costs reach that cap, you pay nothing more for covered drugs the rest of the year. Second, the old "donut hole" coverage gap stays eliminated. Third, the law still limits how fast that national base premium can grow — 6% a year through 2029 — though be precise: that limit is on the national base number, not necessarily on your individual plan's premium. The safety net under your drug costs is still there.
Who is shielded — Extra Help
If money is tight, one program can make this whole change a non-event: Extra Help, officially the Part D Low-Income Subsidy. For people who qualify for the full benefit, it can bring the premium and the deductible to $0 in a qualifying plan. One caveat worth knowing: not every plan is premium-free under Extra Help, so check the Low-Income-Subsidy notice Medicare sends you, or compare the zero-premium options in your area. It is for income under 150% of the federal poverty level plus a savings limit — and if you already have Medicaid, SSI, or a Medicare Savings Program, you get Extra Help automatically. The action: call Social Security at 1-800-772-1213 and say, "I want to apply for Medicare Part D Extra Help — what income and resource documents should I prepare?"
Your window: Open Enrollment, Oct 15 – Dec 7
Here is the part that actually protects your wallet, and it has a real, hard date. Every year, Medicare Open Enrollment runs from October 15 to December 7, and the changes you make take effect January 1. This is exactly the year to use it, because when the cushion comes off, the plan that was cheapest for you in 2026 may not be cheapest in 2027. So don't just accept the renewal. Between those dates, go to medicare.gov/plan-compare, enter your actual drugs and your pharmacy, and sort plans by total yearly cost — not just the premium, because a low premium with high copays can cost you more. If a better plan fits your drugs, switch before December 7. If the website is a lot, call 1-800-MEDICARE and ask them to compare your current plan with 2027 options using your exact prescriptions. Miss December 7 and you may have to wait for another enrollment opportunity, unless you qualify for a Special Enrollment Period.
Your 2027 checklist
1 · Read your Annual Notice of Change (~September) — check the 2027 premium, deductible, formulary (the list of covered drugs), and pharmacy network. 2 · Compare at medicare.gov/plan-compare with your drugs + pharmacy, sorted by total yearly cost (or call 1-800-MEDICARE). 3 · Switch by December 7 if a cheaper plan fits your drugs. 4 · Low income? Apply for Extra Help at ssa.gov or 1-800-772-1213 — it can zero the premium in a qualifying plan.
Free guide: Medicare timing & enrollment
Open Enrollment is one deadline; your first Medicare decisions set the rest. The enrollment windows, the penalties that stick for life, and the choices that quietly shape your costs — on one page you can walk through in a few minutes.
Get the free guide→The honest verdict
Is your Part D premium going up in 2027? Verdict: a temporary cushion is ending, so some standalone premiums will rise — but not everyone's, not automatically, and the exact number for your plan isn't public yet. The real protections — the indexed out-of-pocket cap and the growth limit on the base premium — are still law, and Open Enrollment is your built-in chance to shop your way out of an increase. None of this comes and finds you: read your Annual Notice of Change, compare on the Plan Finder by total cost, and switch by December 7 if a better plan fits. Don't panic at the headline. Check your plan.
Related
Go deeper: 5 bills you may be able to reduce or eliminate after 65, IRMAA — the Medicare surcharge on higher incomes, and getting your Medicare timing right.
Sources
• CMS: Part D 2027 national base premium ($41.33)
• KFF: End of the stand-alone drug-plan subsidies
• Medicare: Open Enrollment (Oct 15 – Dec 7)
• SSA: Medicare Part D Extra Help
• CMS: CY2027 Medicare Advantage & Part D Final Rule (IRA protections)
Not financial advice. This article is educational only — not personal financial, tax, or legal advice. Program rules, income limits, and deadlines change; the 2027 plan premiums are not final. Your own plan, income, and state decide what applies. Read your Annual Notice of Change and verify the current amounts at medicare.gov before you decide.
Common questions
Is Medicare Part D going up in 2027?
A temporary federal program that held down premiums on participating standalone Part D drug plans ends after 2026, so for 2027 the national base beneficiary premium — the figure plan prices are built on — rises to $41.33. That is not necessarily what your own plan will charge: final 2027 plan premiums are not public yet, plans move by different amounts, and Medicare Advantage drug coverage is a separate market. Some standalone-plan enrollees could see a larger increase than in recent years; check your plan's Annual Notice of Change.
What actually ended with Medicare Part D in 2027?
The Part D Premium Stabilization Demonstration, a temporary program that started in 2025, is discontinued after 2026. It did two things: it reduced the national base premium and it capped how much a plan's monthly premium could rise in a year. It was always temporary and is expiring as designed — Medicare was not 'cancelled' and drug coverage was not eliminated. A two-year cushion is simply coming off standalone plans.
What Medicare Part D protections stay in 2027?
The permanent protections written into the Inflation Reduction Act stay in force in 2027: the annual out-of-pocket cap (it is indexed and rises each year — it was $2,100 in 2026), the eliminated 'donut hole' coverage gap, and the law's limit of 6% a year on the growth of the national base premium (that cap applies to the national base, not necessarily to your individual plan).
Who is shielded from the Part D premium change?
Extra Help — officially the Part D Low-Income Subsidy — can bring the premium and deductible to $0 in a qualifying plan for people who get the full benefit. It is for income under 150% of the federal poverty level plus a savings limit, and it is automatic if you already have Medicaid, SSI, or a Medicare Savings Program. Note that not every plan is premium-free under Extra Help, so check the options in your area.
When is Medicare Open Enrollment for 2027 coverage?
Medicare Open Enrollment runs October 15 to December 7 every year, and the changes you make take effect January 1. Read your Annual Notice of Change when it arrives around September, then compare all plans by total yearly cost at medicare.gov/plan-compare using your actual drugs and pharmacy, and switch by December 7 if a better plan fits. Miss the deadline and you may have to wait for another enrollment opportunity unless you qualify for a Special Enrollment Period.