08/13/2026
Proud to have them once again as a Block Sponsor for Nightmare on Columbia!
๐๐ป๐๐ปSeeing scary headlines about Medicare Part D premiums jumping because "subsidies are ending"? Let's clear up what's actually happening.๐ค
First, an important distinction: those subsidies were never going directly to people on Medicare. They were temporary payments to insurance companies, meant to cushion the impact of major reforms under the Inflation Reduction Act.
Starting in 2025, that law did two big things โ it closed the Part D "donut hole" coverage gap entirely and put a hard cap on how much beneficiaries pay out of pocket for prescriptions each year. Since those changes pushed more cost onto the insurance carriers running Part D plans, CMS stepped in with a temporary program to keep premiums from spiking while everyone adjusted.
That temporary program wraps up at the end of 2026.
So what does this actually mean for you?๐
Some Part D premiums may go up in 2027 โ that part's true. But that's very different from saying your drug costs are automatically rising because subsidies disappeared. Two things this change does NOT do: it doesn't touch the Extra Help program, and it doesn't undo the out-of-pocket spending cap you now have as a Part D enrollee.
Here's the honest truth: nobody knows exactly what 2027 premiums will look like yet. Insurance carriers are still submitting their plans, and CMS hasn't finished reviewing them. We'll get real answers once 2027 plan details drop this fall.
Until then, take "everyone's drug costs are about to explode" headlines with a grain of salt โ the real story has more nuance than that.
Bottom line: this is exactly why reviewing your coverage during Annual Enrollment matters every single year. 2027 won't be an exception.
Make sure you reach out to The Fussell Group Insurance Advisors for all of your Medicare Health Plan needs! Call us to schedule your appointment 985-875-7407.
