Medicare Drug-Plan Subsidy to End After 2026, Putting Focus on USVI Premiums

A temporary federal program used to stabilize premiums for standalone Medicare prescription-drug plans will end after the 2026 plan year, leaving Virgin Islands beneficiaries to await the release of final 2027 plans and prices in September. The Centers for Medicare and Medicaid Services announced Tuesday that it will discontinue the Medicare Part D Premium Stabilization Demonstration at the end of 2026. The program was introduced in 2025 to limit volatility and differences in premiums after changes to the Medicare prescription-drug benefit required by the Inflation Reduction Act. The demonstration was designed for standalone Part D prescription-drug plans. It was not a permanent component of Medicare and did not establish the complete monthly premium paid by every beneficiary. CMS said insurers now have enough experience with the redesigned Part D benefit to develop their 2027 bids without the temporary program. The agency said ending the demonstration will return the standalone pre...