(NewsNation) — Retirees shouldn't be alarmed by the ending of a Biden-era Medicare premium subsidy program, an industry expert says.
Last week, the Trump administration said it would move to shutter the program, subsequently bringing to an end Medicare Part D subsidies at the cessation of 2026.
Medicare Part D is optional prescription drug coverage offered by private insurance companies to help people with Medicare pay for brand-name and generic medications.
It is available as a stand-alone plan to add to original Medicare or as part of a bundled Medicare Advantage plan.
"While headlines about the end of Medicare's premium stabilization program may sound alarming, retirees shouldn't confuse that change with a loss of Medicare prescription drug coverage," Chris Maikels, senior actuary and strategy leader of retiree solutions at Aptia Group, told NewsNation.
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"Medicare Part D remains intact, and the 'Extra Help' program, which provides financial assistance with prescription drug costs for eligible lower-income Medicare beneficiaries, is not going away."
The program was restructured under former President Biden to implement a $2,000 annual cap on out-of-pocket spending on prescription drugs. It also permitted Medicare to negotiate prices for certain high-cost Part D drugs.
The majority of enrollees in the subsidy program were seniors or those with disabilities, who are now awaiting information regarding new monthly prices.
"In addition, one of the most significant consumer protections created by the Inflation Reduction Act, the annual cap on out-of-pocket prescription drug spending under Medicare Part D, remains in effect. What could change are the premiums, formularies and plan offerings available in 2027," Maikels said.
"Retirees should plan to review their options during Medicare's annual enrollment period to determine if making a change could reduce their expected costs."
NewsNation partner The Hill contributed to this report.
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