2026 Medicare Part D Bid Information

On July 28, the Centers for Medicare & Medicaid Services (CMS) released preliminary Medicare Part D bid information for contract year (CY) 2026 to help plan sponsors prepare for the upcoming plan year and Medicare Open Enrollment. For the first time, CMS declined certain standalone prescription drug plan bids that included unusually high premium increases and updated the voluntary Part D Premium Stabilization Demonstration by reducing the premium subsidy to $10, increasing the cap on annual premium growth to $50, and removing narrowed risk corridors. For 2026, the national average monthly bid amount is set at $239.27, an increase of 33 percent from last year. The base beneficiary premium will be $38.99. Between 2024 and 2029, the annual increase in the base beneficiary premium is capped by the Inflation Reduction Act’s premium stabilization provision, not to exceed 6% per year. The actual monthly premiums for the Part D plans can vary significantly from the base beneficiary premium.