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1 DEPARTMENT OF HEALTH AND HUMAN SERVICES (HHS) Centers for Medicare & Medicaid Services (CMS) 7500 Security Boulevard Baltimore, Maryland 21244-1850

CENTER FOR MEDICARE

DATE: July 28, 2025 TO: All Medicare Advantage Organizations and Medicare Prescription Drug Plan Sponsors FROM: Chris Klomp Director, Center for Medicare SUBJECT: Annual Release of Part D National Average Monthly Bid Amount and Other Part C & D Bid Information

The Centers for Medicare & Medicaid Services (CMS) is announcing today that the Calendar Year (CY) 2026 Part D national average monthly bid amount is $239.27, the Part D base beneficiary premium is $38.99, and the de minimis amount is $2. Please see the attached notice for more detailed information concerning the CY 2026 Part D national average monthly bid amount, the Medicare Part D base beneficiary premium, the Part D regional low-income premium subsidy amounts, the Medicare Advantage (MA) regional PPO benchmarks, the MA employer group waiver plan (EGWP) regional payment rates, and the Part D calendar year EGWP prospective reinsurance amount.

CMS is also announcing changes to the parameters of the Part D Premium Stabilization Demonstration for CY 2026, a voluntary demonstration program for standalone prescription drug plans (PDPs), which was implemented in CY 2025 to address volatility and variation in standalone PDP premiums following benefit changes mandated by the Inflation Reduction Act of 2022 (IRA). The demonstration design allowed for CMS to continue the demonstration for subsequent years. In 2025, under the voluntary demonstration, there was a reduction in the base beneficiary premium of $15 for all participating PDPs, combined with a year-over-year plan premium increase limit of $35 and narrowed risk corridors applied to participating individual (i.e., non-employer) PDPs. In 2026, CMS is reducing the uniform base beneficiary premium reduction from $15 to $10, increasing the year-over-year total premium increase limit from $35 to $50, and eliminating the narrowed risk corridor thresholds. By reducing the amount of premium stabilization from the government in 2026, we are facilitating the Part D program’s return to operating under regular market conditions. Detailed information regarding the Part D Premium Stabilization Demonstration and the de minimis amount is attached in a separate memo, which contains instructions and timelines for opting into the demonstration, completing rebate reallocation, and volunteering to waive the de minimis amount. Part D sponsors of PDPs will have from Monday, July 28, 2025, until 11:59 PM Pacific Daylight Time (PDT) on Monday, August 4, 2025, to opt into the demonstration for CY 2026. All Part D sponsors will have from Monday, July 28, 2025, until 11:59 PM PDT on