Davids, House Colleagues Call on Trump Administration to Reverse Decision That Could Raise Medicare Drug Costs for Millions

Recently, Representative Sharice Davids joined 50 House colleagues in calling on the Centers for Medicare and Medicaid Services (CMS) to immediately reverse its planned termination of the Medicare Part D Premium Stabilization Demonstration at the end of this year. 

“Seniors and disabled beneficiaries have seen prices fall over the past three years as a result of [this Medicare program],” wrote the lawmakers. “Lower costs and a rise in covered individuals indicate that the demonstration is working. Despite this fact, CMS has chosen to terminate the program amidst a cost-of-living crisis. Ending this demonstration without a plan to maintain lower costs does not solve these problems, but instead shifts the cost onto beneficiaries least able to afford them.”

The Medicare Part D Premium Stabilization Demonstration has helped keep prescription drug plan costs down for nearly 25 million seniors and people with disabilities. Average monthly premiums fell by $26 in 2025 and another $16 in 2026. But with the program set to be terminated, millions of Americans could be asked to pay more each month just to keep the prescription drug coverage they already have. For seniors living on fixed incomes, even a modest increase can mean a real choice between paying for medicine and paying for groceries, utilities, or other necessities.

This action follows Davids’ meeting with Kansans from across the Third District on the economic impacts of the Trump administration’s policies on working families. In the last month alone, she’s hosted two roundtable discussions with patients and healthcare providers on the impacts of rising healthcare costs, held a press conference on her work to provide economic relief for middle-class families, and met one-on-one with constituents to hear about the financial challenges families are facing. 

Read the full letter here or below:

Dear Administrator Oz,

We write to urge the Center for Medicare and Medicaid Services (CMS) to reverse the termination of the Medicare Part D Premium Stabilization Demonstration. The demonstration program has stabilized drug prices for nearly 25 million people and CMS’s decision to end the demonstration puts affordability at risk during a time where seniors continue to face rising costs.

Seniors and disabled beneficiaries have seen prices fall over the past three years as a result of this program. The base beneficiary premium has lowered, which is used to calculate individual plan premiums, and annual increases in monthly premiums have been limited. Since the rollout of the demonstration, enrollment increased from 22.8 million in 2024 to 24.9 million in 2026 and average monthly premiums reduced by $26 in 2025 and $16 in 2026. Lower costs and a rise in covered individuals indicate that the demonstration is working. Despite this fact, CMS has chosen to terminate the program amidst a cost of living crisis.

We want to hold Part D sponsors and drug manufacturers accountable for the prices ultimately paid by beneficiaries, and we welcome the opportunity to work with you to address the underlying drivers of increased costs. Ending this demonstration without a plan to maintain lower costs does not solve these problems, but instead shifts the cost onto beneficiaries least able to afford them. Plan prices are expected to be made available in September and roughly 75% of current enrollees are likely to see their plan costs increase. Ahead of this, we ask that CMS reverse this decision and respond to the following:

1. CMS claims that insurers no longer need temporary stabilization payments, do you have evidence to support this claim? Has CMS publicly released any analyses, and if not, will it do so?

2. What analysis has CMS conducted on the impact of premium increases on individuals living on fixed incomes? If no analysis exists, please state so.

3. If premium increases exceed CMS’s expectations, what corrective actions will you take to help immediately?

4. What data will be collected to evaluate how the termination of this program is impacting seniors and disabled individuals?

5. Did CMS consult beneficiary advocates, plan sponsors, or state insurance regulators before deciding to end the demonstration? If so, please identify them and describe what CMS heard.

As health care costs surge, pushing individuals off insurance due to unaffordability, we urge you to reinstate the Medicare Part D Premium Stabilization Demonstration immediately. We must do all that we can to protect lower prescription drug prices for those who need it most. Thank you for your attention to this important matter.