08/10/2026
Have you seen headlines about Medicare Part D costs going up? Here’s what you should know.
There’s been a lot of confusion, so let’s break it down clearly.
First, what already changed:
Beginning in 2025, Medicare made major updates to Part D:
• The coverage gap (often called the “donut hole”) was eliminated
• Annual out-of-pocket prescription drug costs are now capped
These changes were designed to protect Medicare beneficiaries and make drug costs more predictable.
To help keep premiums stable while these changes took effect, a temporary program was put in place to support insurance companies.
That program is expected to end after 2026.
So what does that mean for you?
Some Part D premiums could increase in 2027 as the market adjusts. However:
• This does NOT automatically mean your prescription drug costs will increase
• The out-of-pocket cap remains in place
• Extra Help is not affected
The reality is we don’t yet know exactly what 2027 plans will look like. Insurance carriers are still submitting plans, and more details will be available soon.
What should you do?
Be cautious of headlines that suggest everyone will see higher costs. The situation is more nuanced than that.
And as always, make sure to review your coverage during Annual Enrollment. Every year is different, and having the right plan matters.
If you have questions, we’re here to help you understand your options and feel confident in your coverage.
Our agency specializes in Medicare Supplements, Medicare Advantage and Medicare Part D plans.
