The Centers for Medicare & Medicaid Services said Tuesday it will end its Medicare Part D Premium Stabilization Demonstration at the end of the 2026 contract year, returning the program to traditional market conditions beginning in 2027.

CMS said Part D plan sponsors now have sufficient experience under the redesigned Part D benefit established by the Inflation Reduction Act to develop their 2027 bids without the voluntary subsidy program.

The agency said the 2027 national base beneficiary premium for Medicare Part D will be $41.33, up from $38.99 in 2026. The annual increase in the base premium remains capped at 6% through 2029 under the Inflation Reduction Act.

CMS also said the 2027 national average monthly bid amount will be $296.05.