Friday, August 07, 2026
A recent federal announcement could affect the cost of Medicare prescription drug coverage for millions of older adults.
The Centers for Medicare & Medicaid Services (CMS) announced that it will end a temporary program that helped keep Medicare Part D (prescription drug plan) premiums lower during the transition to recent Medicare drug benefit changes. The program will expire at the end of 2026, which means some people may see higher monthly premiums beginning in 2027.
What does this mean for you?
If you have a stand-alone Medicare Part D prescription drug plan, your monthly premium could increase next year. While CMS expects most premium increases to be modest, the exact amount will depend on the plan you choose during the Medicare Open Enrollment Period this fall. Final 2027 premiums will be released in September.
The good news is that some important Medicare savings are not changing.
- The annual limit on out-of-pocket prescription drug costs will remain in place, helping protect people with high medication expenses.
- Financial assistance programs, such as Extra Help, will continue to be available for those who qualify.
- You will still have the opportunity to compare plans during Open Enrollment to find the best coverage for your needs.
What should Medicare beneficiaries do?
This year’s Open Enrollment (October 15–December 7) will be especially important. Even if you’re happy with your current prescription drug plan, it’s a good idea to review your options, compare premiums and drug coverage, and make sure your plan is still the best fit for your medications and budget.
Additional Resources and Assistance
Staying informed and reviewing your coverage each year can help you avoid unexpected costs and ensure you continue receiving the medications you need.
AgeGuide can help you navigate these changes. Call today to talk about any questions or concerns you may have (630) 293-5990.
