This Medicare Part D subsidy is expiring. We answered your questions

A U.S. government subsidy that helped lower the cost of Medicare prescription drug plans is ending a year early, potentially affecting monthly premiums for millions of beneficiaries in 2027.

The most important thing to know is that Medicare Part D is not ending, said Ryan Ramsey, associate director of health coverage and benefits at the National Council On Aging.

READ MORE: Supreme Court rejects appeals from drug manufacturers over Medicare price negotiations with government

"Anyone that is afraid that they are losing benefits can hopefully have their worries cleared up because the assistance that exists out there for people is sticking around," he said.

Yet the Trump administration's move to discontinue the subsidy is raising concerns among Medicare Part D enrollees about how much they'll pay for coverage.

Ann Bush, 70, has Type 1 diabetes and uses an insulin pump. She also had a kidney transplant three years ago and takes medications that will soon be covered under Part D. But she's now worried about being able to afford a potential increase in premiums and co-pays, especially for her diabetes supplies and transplant medications.

Relying solely on Social Security income after losing the small pension she used to receive from the American Veterinary Medical Association, she told PBS News she needs "to be more judicious" with her finances.

"Already I've had to decline medications from my doctor based on their unaffordability," Bush said.

With open enrollment approaching this fall, here's what you need to know about changes to Medicare Part D.

What's actually happening to Medicare Part D, and when?

The Trump administration is ending an approximately $9.8 billion subsidy program called the Medicare Part D Premium Stabilization Demonstration.

Back in 2022, a provision in President Joe Biden's Inflation Reduction Act capped Part D deductibles, shifting more costs to insurance companies.

WATCH: How the Inflation Reduction Act aims to lower drug costs

When insurance companies warned that their coverage costs would increase once the caps took effect in 2025, likely leading to higher premiums for beneficiaries, CMS implemented the pilot program in 2024.

Put in simple terms, the program gave insurance companies a sum of money to help subsidize lower prices for consumers. It mandated that insurance plans couldn't increase premiums by more than $35 between 2024 and 2025, and was intended to last for three years or more.

Last year, the Centers for Medicare and Medicaid Services dropped the subsidy amount and allowed insurance plans to increase premiums by no more than $50. In late July, CMS said it would halt the program at the end of 2026.

The Part D subsidy program officially terminates on Jan. 1, 2027.

What can Medicare Part D recipients expect to hear about the changes?

The most important thing to know is that Medicare Part D is not ending, said Ryan Ramsey, associate director of health coverage and benefits at the National Council On Aging. File photo by Getty Images

When your Medicare Part D plan sponsor sends out information about next year's benefits, called the Annual Notice of Change, most Medicare enrollees can expect to pay less than $10 more in premiums, CMS Administrator Dr. Mehmet Oz said in a social media post in July.

You also may see changes to formulary coverage (i.e. which drugs are covered), as well as cost-sharing, such as co-insurance or co-pays, said Juliette Cubanski, vice president and director of KFF's Program on Medicare Policy.

Those changes happen yearly in the fall ahead of open enrollment, when you can select a new plan. Open enrollment runs Oct. 15 through Dec. 7.

The information will likely come in a packet or brochure, which can be easily mistaken for junk mail, Cubanski added. But this year, in particular, recipients need to examine the information carefully to take note of plan changes, especially for people worried about large premium increases, she said.

Will there be Medicare Part D coverage changes?

Right now, it's impossible to know, Cubanski said. That information will only be available on Oct. 1, when plan sponsors can start to market their offerings.

What will happen to my Medicare Part D premiums, out-of-pocket maximums or cost-sharing?

This is another wait-and-see question.

People's premiums were about $26 lower in 2025 and about $16 lower this year on average than they would have been without the subsidy, according to a federal government report.

It's not clear how much people's premiums will increase next year, if at all. CMS said it would release more key information in September.

Will Medicare Advantage be affected?

No. Only standalone drug plans participated in the subsidy demonstration that is expiring. Medicare Advantage programs, which are plans offered by private companies that are approved by and follow the rules set by Medicare, were not part of it.

Ramsey advises those who are considering the switch to Medicare Advantage to check your eligibility for other plans that include the supplemental pharmaceutical policy Medigap. Medigap may be an option for those who see substantial changes that they cannot afford, but you cannot be enrolled in both Medigap and Medicare Advantage at the same time.

How will this change affect my GLP-1 medications?

FILE PHOTO: Boxes of Ozempic and Wegovy made by Novo Nordisk are seen at a pharmacy in London, Britain March 8, 2024. The Medicare Bridge program will allow Part D enrollees to access GLP-1 drugs for weight loss at the cost of $50 per month. Photo by Hollie Adams/ Reuters

The Medicare GLP-1 Bridge program, an 18-month pilot program that allows people enrolled in a Part D plan to access some GLP-1 medications with a $50 copay, is also unaffected by the subsidy because it operates outside of Part D's coverage and payment process.

WATCH: The potential impact of lowering the cost of weight loss drugs

The Bridge program will end Dec. 31, 2027.

Coverage of other GLP-1 medications under your existing Part D plan may change depending on your formulary or your insurance's prior authorization requirements next year, Cubanski said.

But there's good news: Three brand-name drugs containing semaglutide — Ozempic and Rybelsus for diabetes, and Wegovy for obesity — may cost less. That's because the federal government was able to negotiate Medicare prices directly with the drug companies for a select number of medications.

"All plans are required to cover drugs that are selected for negotiation," Cubanski said. That could make those drugs more easily accessible to many more people, she said.

If prescribed GLP-1s are covered by your insurance provider, you won't be able to use the Medicare GLP-1 Bridge program, Ramsey said.

What about my lifesaving medications?

Some classes of medications are required to be covered by all plans. They're called "protected classes," and they include:

• Antidepressants
• Antipsychotics
• Anticonvulsants
• Immunosuppressants for treatment of transplant rejection
• Antiretrovirals
• Antineoplastics, or cancer-treating drugs

Higher-cost medications are often covered under the plan's "specialty tier," Cubanski said. Those drugs will have a co-insurance of no more than 33% and no less than 25%.

"That never changes from one year to the next," she said. If you have coverage for any expensive medication right now that's not in a protected class, it's important to make sure it will still be covered next year, she added.

Drug manufacturer programs may also provide coupons or discounts for lifesaving medications, Ramsey said. State-run pharmaceutical assistance programs are another way to offset higher premiums or co-pays, if available in your state.

Will my durable medical equipment still be covered?

Durable medical equipment — such as canes, crutches, hospital beds and oxygen equipment — is covered under Medicare Part B, so it won't be affected by the subsidy ending.

Will the Extra Help program change?

The Low-Income Subsidy, or Extra Help program, is available to individuals whose income is less than $23,940 and married couples whose income is less than $32,460. People who qualify for Extra Help pay no premiums, no deductibles and no more than $12.65 for prescription drugs.

Because people enrolled in that program have no premiums and no deductibles, the subsidy didn't really affect them, Cubanski said.

"That program is not going away," Cubanski said. "People who are receiving that extra help really just need to make sure that they're in a premium-free plan, because if they're not, they could be leaving valuable financial support on the table."

What else do I need to know or look out for?

If this is all confusing, there's help available.

The State Health Insurance Assistance Program, or SHIP, is funded by the federal government and provides free counseling to Medicare beneficiaries.

Every state, plus the District of Columbia, Puerto Rico, Guam and the U.S. Virgin Islands, has a SHIP, though some states may use different acronyms.

Insurance brokers are also available, Cubanski said, but in recent years, many insurers no longer pay commission to agents for enrolling people in standalone drug plans. Without that financial incentive, they may then have less incentive to help people access those plans, she added.

Beneficiaries can also use the Medicare.gov website to compare plans side by side during open enrollment.