Affordable Premiums for Seniors Act would extend Medicare Part D Premium Stabilization Demonstration through 2029

Washington D.C. — Today, U.S. Reps. Terri Sewell (AL-07) and Kathy Castor (FL-14) 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 comes after the Trump Administration announced that the Centers for Medicare & Medicaid Services (CMS) would terminate the Part D Premium Stabilization Demonstration at the end of 2026.

“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."

“Every trip to the grocery store and every monthly bill is increasingly painful for my older neighbors," said Rep. Castor. "The added strain of higher prescription drugs 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. 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.”

CMS established the demonstration in 2025 following changes to the Medicare Part D benefit under the Inflation Reduction Act (IRA), with the goal of helping 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 a greater share of 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 $312 on average 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.

A senior member of the House Ways and Means Committee, which has jurisdiction over Medicare, Rep. Sewell has consistently championed efforts to lower prescription drug costs and strengthen access to affordable health care for seniors. She strongly advocated for the implementation of the Inflation Reduction Act’s prescription drug provisions, and was the only member of Alabama's congressional delegation at the time to vote in favor of the law.

The Affordable Premiums for Seniors Act is also cosponsored by Reps. Nanette Barragán (CA-44), Troy Carter (LA-02), J. Luis Castro (CA-46), Jim Costa (CA-21), Suzan DelBene (WA-01), Debbie Dingell (MI-06), Jonathan L. Jackson (IL-01), Henry “Hank” Johnson (GA-04), Raja Krishnamoorthi (IL-08), Kweisi Mfume (MD-07), Doris O. Matsui (CA-07), Eleanor Holmes Norton (DC-00), Tom Suozzi (NY-03), Ritchie Torres (NY-15), Lauren Underwood (IL-14), and Marc Veasey (TX-33).

Bill text is available here.

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