WASHINGTON, D.C. — This week, U.S. Reps. Kathy Castor (FL-14) and Terri Sewell (AL-07) introduced the Affordable Premiums for Seniors Act, legislation that would prevent the Trump Administration from prematurely ending the Medicare Part D Premium Stabilization Demonstration and keep monthly premiums down for seniors enrolled in standalone Medicare prescription drug plans. The legislation follows the Trump Administration’s announcement that the Centers for Medicare & Medicaid Services (CMS) would terminate the Part D Premium Stabilization Demonstration at the end of 2026.

“Every trip to the grocery store and every monthly bill is increasingly painful for my older neighbors. The added strain of higher prescription drug costs is the last thing they need, so I will fight to reverse a recent HHS scheme to increase Medicare prescription drug costs for seniors and people with disabilities,” said Rep. Castor. “The Affordable Premiums for Seniors Act will reverse the HHS scheme, keep premiums down and provide greater certainty on health care costs. Seniors worked hard for their earned Medicare benefits, and I am fighting to keep those benefits affordable and dependable.”

“For seniors living on fixed incomes, every dollar matters. At a time when seniors are already struggling to keep up with the rising cost of groceries, housing, health care, and everyday necessities, the Trump Administration should be doing everything it can to lower costs, not ending a program that is helping seniors afford their prescription drugs,” said Rep. Sewell. “Ending the Part D Premium Stabilization Program could mean higher premiums and greater financial strain for millions of seniors. The Affordable Premiums for Seniors Act will help ensure that Medicare beneficiaries have the stability and certainty they deserve.”

CMS established the demonstration in 2025 after changes to the Medicare Part D benefit under the Inflation Reduction Act (IRA) to help stabilize premiums for beneficiaries enrolled in standalone prescription drug plans.

The IRA made several changes to Medicare prescription drug coverage, including establishing a $2,000 annual cap on out-of-pocket prescription drug costs beginning in 2025. As the redesigned benefit shifted more prescription drug costs to Part D plans, the Premium Stabilization Demonstration was created to help mitigate premium increases and provide greater stability during the transition.

According to the Medicare Payment Advisory Commission (MedPAC), the demonstration saved seniors an average of $312 in 2026. Ending the demonstration could expose beneficiaries to higher premiums beginning in 2027.

The Affordable Premiums for Seniors Act would require CMS to:

• Continue the Part D Premium Stabilization Demonstration through calendar year 2029;
• Continue the demonstration in subsequent years if terminating it would result in higher premiums for Medicare beneficiaries; and
• Issue guidance for calendar year 2027 within 30 days of enactment to provide seniors and Part D plans with greater certainty ahead of the upcoming plan year.