Prescription savings guide

Medicare Part D Premiums in 2027: The Subsidy Is Ending — What Florida Seniors Should Know

Last updated October 11, 2026 · Reviewed by the LowerScript editorial team · Español

On July 28, 2026, CMS announced that the Part D Premium Stabilization Demonstration — the temporary federal subsidy that reduced standalone drug-plan premiums and capped how much they could rise each year — ends after 2026. For 2027 the base Part D premium rises to $41.33 (from $38.99 in 2026), and with the yearly cap gone, individual plans can raise premiums by more than in recent years. CMS has now published the 2027 plan figures: Florida has 11 stand-alone Part D plans, and the lowest monthly premium is $5.30. Open enrollment runs October 15 – December 7. The practical response: read your plan's Annual Notice of Change, compare plans on more than premium, check whether you qualify for Extra Help, and know the cash price of your generics before you decide.

2027 plan changes in Florida →

What exactly is ending

The Premium Stabilization Demonstration was a temporary program CMS created in 2024 to cushion standalone prescription drug plans (PDPs) through the Inflation Reduction Act's benefit redesign. In 2025 it cut the base beneficiary premium by $15 a month and capped any plan's premium increase at $35 for the year; in 2026 the reduction was $10 a month with a $50 cap. Across the two years it cost about $9.8 billion, per KFF. On July 28, 2026, CMS announced the demonstration concludes at the end of 2026, with plans "returning to traditional market conditions" for 2027. It applied to standalone PDPs only — about 24.9 million people nationally in 2026 — not to Medicare Advantage drug coverage.

What the published numbers say

Several 2027 figures are now public. The base beneficiary premium — the starting point from which each plan's actual premium is calculated — is $41.33 for 2027, up about 6% from $38.99 in 2026. The national average monthly bid amount, which reflects what plans expect coverage to cost, jumped to $296.05 from $239.27. Two other 2027 parameters are set as well, separate from the premium story: the Part D standard deductible rises to $700 (from $615 in 2026), and — as covered below — the annual out-of-pocket threshold rises to $2,400 (from $2,100). With the $50-per-year cap gone, nothing limits how much any single plan can raise its premium, so compare your own plan's 2027 premium. CMS's September 28, 2026 state fact sheet for Florida lists 11 stand-alone Part D plans for 2027, with the lowest monthly premium at $5.30. It also reports that 52.69% of stand-alone plan members have access to a plan with a lower premium than in 2026. Nationally, KFF counts 316 stand-alone Part D plans for 2027, down from 360 in 2026 (published October 2, 2026). Despite that higher base figure, CMS's broader landscape data shows the real enrollment-weighted average premium across all standalone Part D plans is projected to rise less than $1 overall — from $35.09 in 2026 to $36.00 in 2027 (as of September 2026, per CMS) — with most non-low-income beneficiaries able to access basic drug coverage for $10.30 a month or less.

What is not changing

The Inflation Reduction Act's core protections continue in 2027: the annual out-of-pocket cap on covered drugs rises to $2,400 (from $2,100 in 2026), insulin stays capped at $35 a month on covered plans, and Medicare's negotiated prices on selected drugs proceed as scheduled. The change ahead is about premiums — what you pay every month for the plan itself — not about those spending protections.

What Florida seniors can do this fall

Watch the mail for your plan's Annual Notice of Change (ANOC), which arrives before open enrollment and states your 2027 premium in writing. When open enrollment opens October 15 (through December 7), compare plans on Medicare.gov's Plan Finder — and compare on your actual medications and pharmacy, not premium alone: a plan that costs $5 more a month but covers your drugs at your Publix or CVS can easily beat a cheaper one that doesn't. Free, unbiased help is available from Florida SHINE (Serving Health Insurance Needs of Elders), the state's Medicare counseling program, at 1-800-963-5337. And check whether you qualify for Extra Help — the federal low-income subsidy that lowers Part D premiums and copays — through the Social Security Administration.

Where a free discount card fits

A discount card is not a substitute for drug coverage — but it's worth knowing what your medications cost in cash before you pick a 2027 plan. The free LowerScript card can't be combined with Medicare on the same purchase, and card fills don't count toward your plan's out-of-pocket cap; you simply choose, fill by fill, whichever price is lower. On many common generics the network cash price can beat a plan copay — especially before you've met a deductible. Check your medications' cash prices, and see our full guide to using a discount card with Medicare.

Frequently asked questions

Even with coverage, cost keeps some people from their medications: a 2024 analysis led by CMS researchers found that about 7.5% of Medicare Part D beneficiaries reported not taking a medication as prescribed because of cost in 2022.¹ Comparing cash prices with a free discount card can help when a medication is not covered or the cash price beats your plan’s cost.

References

1. Petroski J, Strachan K, Schluterman N, Doss W. Non-cost-related sources of medication nonadherence in the Medicare population. Health Affairs Scholar. 2024;2(12):qxae152. doi:10.1093/haschl/qxae152

Sources: CMS, "Medicare Part D 2027 National Average Monthly Bid Amount Information" fact sheet (July 28, 2026); KFF Quick Take on the end of the Premium Stabilization Demonstration (July 2026); Forbes, "A Medicare Drug Subsidy Is Ending" (July 31, 2026). Florida figures are from CMS, 2027 Medicare Advantage & Part D Landscape State-by-State Fact Sheets (September 28, 2026); national stand-alone plan counts are from KFF (October 2, 2026). This guide is general information, not medical, legal or financial advice — decisions about Medicare coverage are yours, ideally with help from SHINE or your plan. LowerScript is a discount program, not insurance. Not a Medicare prescription drug plan. LowerScript does not sell or recommend Medicare plans. LowerScript is not affiliated with Medicare or CMS.

More guides: Can You Use a Discount Card With Medicare? · Medicare Prescription Discounts in Florida · Prescription Discounts for Seniors in Florida · Insurance vs Cash Price  |  All savings guides · Drug prices