WASHINGTON – Senator Ruben Gallego (D-AZ) called on the Centers for Medicare & Medicaid Services (CMS) to take immediate action to prevent steep increases in Medicare Part D prescription drug premiums for 2026.
“I am deeply concerned about the impact premium increases will have on individuals who rely on Medicare Part D for access to essential medications,” Senator Gallego wrote in a letter to CMS Administrator Dr. Mehmet Oz. “Any increase in premiums places an undue financial burden on beneficiaries at a time when Americans are already feeling the strain of rising health care costs.”
CMS recently announced the 2026 preliminary rate information for Medicare Part D prescription drug plans, which indicates that the 2026 national average base premium will be increase by 6%, the maximum limit allowed under the Inflation Reduction Act.
The increase is largely driven by CMS’s decision to scale back the premium stabilization demonstration that was established by the Biden administration. Under the demonstration, beneficiary prescription drug plans received up to a $15 monthly subsidy to limit premium hikes. For 2026, CMS plans to reduce the subsidy to Part D plans by one third and raise the limit on a plan’s monthly premium from $35 to $50. This means that Medicare beneficiaries will see notably higher premiums in 2026.
“Many Medicare beneficiaries are on fixed incomes, and even modest increases in premiums may force them to make difficult decisions between paying for medications and covering other basic living expenses,” Senator Gallego continued. “It is vital that CMS prioritizes Medicare beneficiaries’ ability to access prescription drugs at an affordable rate.”
Senator Gallego requested answers to the following questions:
- What safeguards has CMS put in place to ensure the premium hikes do not outweigh the savings from the $2,000 out-of-pocket cap as established by the Inflation Reduction Act?
- To what extent are Prescription Drug Plan (PDP) sponsors shifting costs to patients via other pricing mechanisms, such as formularies? How will CMS ensure beneficiary costs remain stable and affordable?
- As noted, CMS is reducing the premium subsidy from $15 to $10. How is this change intended to help beneficiaries given that the subsidy program has proven to drive down costs? How will CMS ensure that premiums remain low after the subsidies are expected to end in 2027?
- Are there any prescription drugs that might be dropped from coverage in an effort to keep the premiums down? How is CMS monitoring potential changes to formularies?
- How is CMS ensuring that beneficiaries in rural communities that have fewer plan options are not further burdened by the premium increases?
- What criteria is CMS using to approve and reject bids by PDP sponsors?
Read the full letter HERE.
8/14/25