Medicare Part D 2027 National Average Monthly Bid Amount Information
Article Publication Date
Summary
The Centers for Medicare & Medicaid Services (CMS) recently released preliminary technical information on Medicare Part D bids for contract year (CY) 2027. In 2027, the national average monthly bid amount (NAMBA) will be $296.05, up from $239.27 in 2026. NAMBA is an enrollment-weighted average of all applicable Part D plan bids for basic Part D benefits, with weights based on the number of enrollees in each plan. The NAMBA is used to calculate the government subsidy for plans. For 2027, the base beneficiary premium will be $41.33, up from $38.99 in 2026. The national base beneficiary premium is the starting point for calculating a plan-specific basic Part D premium. Between 2024 and 2029, the annual increase in the base beneficiary premium is capped by the IRA’s premium stabilization provision not to exceed six percent per year.
Additionally, CMS announced the conclusion of the Part D Premium Stabilization Demonstration, a voluntary demonstration for standalone prescription drug plans implemented in CY 2025 to address volatility and variation in standalone premiums following benefit changes mandated by the Inflation Reduction Act (IRA). In 2025 and 2026, the demonstration program provided a fixed-dollar reduction in the Part D base beneficiary premium and an annual dollar limit on a plan's total Part D premium. CMS stated that its bid analysis for CY 2027 indicates that Part D plan sponsors had sufficient experience with the redesigned Part D benefit to support their assumptions in developing their prescription drug plan bids. Therefore, CMS will discontinue the demonstration at the end of CY 2026 to return the program to operating under traditional market conditions in CY 2027.
Additionally, CMS announced the conclusion of the Part D Premium Stabilization Demonstration, a voluntary demonstration for standalone prescription drug plans implemented in CY 2025 to address volatility and variation in standalone premiums following benefit changes mandated by the Inflation Reduction Act (IRA). In 2025 and 2026, the demonstration program provided a fixed-dollar reduction in the Part D base beneficiary premium and an annual dollar limit on a plan's total Part D premium. CMS stated that its bid analysis for CY 2027 indicates that Part D plan sponsors had sufficient experience with the redesigned Part D benefit to support their assumptions in developing their prescription drug plan bids. Therefore, CMS will discontinue the demonstration at the end of CY 2026 to return the program to operating under traditional market conditions in CY 2027.