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10 demonstration in CY 2026, subject to the limitations below. Part D sponsors must include all plans under each of their standalone PDP contracts in the demonstration if they choose to participate. Part D sponsors with multiple standalone PDP contracts must include all contracts in the demonstration if they choose to participate. If a Part D sponsor is participating in the demonstration for CY 2025 and offers a new standalone PDP for CY 2026, then that new plan must be included in the demonstration if the sponsor as a whole continues to participate in CY 2026. If a Part D sponsor chose not to participate in the demonstration in CY 2025 and chooses to offer a new standalone PDP in CY 2026, the new standalone PDP would not be eligible for participation in the demonstration because the Part D sponsor offering that PDP is not eligible due to its decision not to participate in CY 2025. An entity that was not a Part D sponsor in CY 2025 when the demonstration began but enters the Part D market in CY 2026 or a later year if the demonstration is still ongoing, and therefore did not have the opportunity to opt into the demonstration in a preceding year, would be eligible for participation in the demonstration in the year in which it enters the Part D market and in subsequent years, if applicable, provided it chooses to participate in the first year it is eligible. The demonstration is voluntary and nationwide (all regions). This demonstration is for standalone PDPs only and does not alter any payment-related parameters for Medicare Advantage plans with prescription drug coverage (MA-PDs) that are established in statute, regulation, or guidance. Because EGWPs do not submit bids, they are only eligible for the first element of the demonstration and not the second. Additionally, participating EGWPs may be required to submit additional data to the Office of the Assistant Secretary for Planning and Evaluation (ASPE) to aid in understanding and evaluating the impacts of the demonstration on the stabilization of EGWP beneficiary premiums. Parameters: The demonstration was implemented in 2025. The demonstration design allowed for CMS to continue the demonstration for subsequent years with parameters to be adjusted to reflect market conditions in those years. The second year of the demonstration will be conducted under the parameters described in this memorandum, affecting payments made to participating Part D sponsors for costs incurred from January 1, 2026, through December 31, 2026. For each subsequent year, if applicable, CMS will assess each element of the demonstration separately to determine appropriate parameters for such subsequent plan year, considering the success of each element in achieving the goals of the demonstration in prior years and whether market conditions suggest that Part D sponsors have adequate data on the Part D market to have stable actuarial information on which to base their PDP bids in the absence of additional premium stabilization. The value of one or more of the parameters may be reduced for a subsequent demonstration year to equal its value absent the demonstration. Sponsors that choose to participate in CY 2026 will have the opportunity to choose whether to participate in the demonstration in subsequent demonstration years, if any. However, in order to be eligible to participate in any subsequent demonstration year, a Part D sponsor would have to have participated in the immediately preceding demonstration year. Eligible Part D sponsors that opt into the demonstration will be required to notify CMS of their intent to participate in advance of the voluntary de minimis waiver process.