07/31/2026
Happy Friday! Please DO NOT get your information regarding upcoming Part D changes from the media. Much misinformation is being spread. Here is what is really going on:
To begin, Medicaid is not affected.
In 2022, through the Inflation Reduction Act, the Biden Administration enacted changes to Part D which put financial pressure on the Part D Plan Sponsors (insurance companies). To offset this pressure, the Biden Administration enacted a TEMPORARY 3-year demonstration which paid money to the insurance companies to keep premiums down. This was always designed to be temporary, never permanent. 2027 is the last year, the subsidies were to be paid.
Each year, the insurance companies submit plans to CMS for approval - nothing new here. After reviewing the 2027 Part D plans submitted by the insurance companies, the Trump Administration found that the subsidies are no longer needed, saying the Part D plans are “equipped to price plans without the $9.8 billion federal subsidy”.
