A Medicare Drug Subsidy Is Going Away: Get The Details
Understand Changes to Medicare Part D
You may have heard that a Medicare “subsidy” is ending. Here’s the simple version: prescription drug premiums may go up in 2027 for some people with Medicare. Here’s what’s happening, what isn’t changing, and what to do about it.
What’s Ending? The Part D Premium Stabilization Demonstration Explained
Since 2025, the government has been paying extra money to insurance companies to help keep Medicare Part D (prescription drug plan) premiums low and stable. This program is called the Part D Premium Stabilization Demonstration.
The Centers for Medicare & Medicaid Services (CMS) announced this program will end after 2026. Starting in 2027, insurance companies will set their own prices without that extra help. Learn more from CMS.
Who Does This Affect?
This applies to people with a standalone Part D drug plan (Original Medicare + a separate drug plan). It does not directly affect people whose drug coverage is bundled into a Medicare Advantage plan.
What This Could Mean for You
Premiums for standalone drug plans may go up more than usual next year. The exact amount depends on your specific plan — it’s different for everyone. The nonpartisan research group KFF has more detail at kff.org.
What’s Staying the Same With Medicare Part D
This is the good news. A few important protections are staying exactly the same:
- Part D drug coverage still exists. It is not going away.
- The yearly cap on drug costs still applies. Once you spend a set amount out of pocket in a year, you pay $0 for covered drugs the rest of that year. More details can be found on on Medicare.gov.
- “Extra Help” is untouched. This is a separate program that helps people with limited income pay for drug coverage. If you already have it, you keep it.
- You can still spread out costs monthly through the Medicare Prescription Payment Plan. Learn more here.
What Should You Do?
- Don’t panic. Nothing changes until 2027.
- Watch your mail in September. Your plan will send an “Annual Notice of Change” showing your new costs.
- Compare plans during Open Enrollment (November 1 – January 15). This is your chance to switch to a cheaper plan if needed.
- See if you qualify for Extra Help. It could save you a lot, regardless of this change. Apply at ssa.gov/medicare/part-d-extra-help.
- Ask questions. Call 1-800-MEDICARE (1-800-633-4227) anytime.
How Accessia Health Can Help
Rising drug costs can be stressful to plan around, no matter what’s happening in Washington. If you’re managing a chronic or rare condition and these changes have you worried about affording your medications, Accessia Health may be able to ease that burden. Our team helps patients make sense of their coverage and connects them with financial assistance for copays, premiums, and other out-of-pocket costs tied to their diagnosis.
Explore our patient assistance programs to see what’s available, or reach out to our team directly for one-on-one guidance at 800-366-7741.
Where to Get Additional Help
- Medicare.gov — compare plans and check costs: medicare.gov
- Apply for Extra Help — ssa.gov/medicare/part-d-extra-help
- Free local Medicare counseling (SHIP) — medicare.gov/talk-to-someone
Bottom line: Your Part D coverage isn’t disappearing, and key protections like the yearly cost cap and Extra Help are staying in place. Some premiums may rise a bit in 2027, so it’s worth comparing plans this fall — but there’s no need to worry today.
