ROCHESTER, N.Y. — A federal subsidy intended to help stabilize Medicare Part D premiums is ending at the end of 2026.
The change could impact seniors who have regular Medicare and then an added Part D plan for prescriptions coverage, those with Medicare Advantage plan are not impacted.
Donald Adams worked hard through his life, “I was cooking at the House of Mercy for 450 people a day,” the retiree tells News10NBC. But now, he’s pinching pennies to save for the medications that he needs. “My average medicine cost me anywhere between $21 and $28 every month,” Adams says. That’s per medication for a total of, “$331 to $342,” he adds.
There have been times when tough choices have had to be made. “I have to look at what am I going to do because the rent is going up, yes all of this here stuff,” Adams says. Now he worries the price of his prescriptions may go up again.
Right now, the federal government pays billions of dollars in subsidies to insurance companies to keep prescription drug insurance at an average of $36 per person, per month. The Trump administration has said next year those subsidies will end.
In a post on X, CMS Administrator Dr. Mehmet Oz said “We are stabilizing the market so this bailout is no longer needed. Premiums will go up by less than $10 for most Medicare recipients, with many even seeing lower premiums.”
This year, out-of-pocket spending on covered Part D drugs is capped at $2,100. The end of the subsidies shouldn’t impact that cap for next year.
Those who have Medicare Part D plans will have a much clearer idea of just how much this change will impact premiums in mid to late September. That’s when insurance companies put their premiums and plan details out for 2027.
It’s important to note that the Medicare Part D low-income subsidy program, commonly known as “Extra Help,” is not ending. That’s for low-income seniors and helps to cover some of the deductibles and co-pays associated with prescription drug coverage.
The post If you have Medicare Part D, a federal subsidy stabilizing your drug costs down is going away — here’s what it means for you appeared first on WHEC.com.
