Senator Ruben Gallego (D-AZ) spearheaded a recent letter to Centers for Medicare & Medicaid Services (CMS) Administrator Dr. Mehmet Oz, urging safeguards to prevent Medicare Part D prescription premium hikes.
As Sen. Gallego explained, CMS recently announced that the 2026 preliminary rate information will increase by 6%, which is the highest amount authorized by the Inflation Reduction Act.
The Biden Administration implemented a system known as a premium stabilization demonstration. This system allowed for beneficiary prescription drug plans to receive a $15 subsidy, which CMS intends to reduce by one-third going into 2026.
As a result, the resulting premium rate will rise from $35 to $50, prompting Sen. Gallego to say, "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."
"It is vital that CMS prioritizes Medicare beneficiaries' ability to access prescription drugs at an affordable rate," the Arizona Senator continued, followed by demanding answers to several questions.
For instance, Gallego asked what safeguards would be implemented to prevent premium hikes from outweighing the savings from the $2,000 out-of-pocket cap as established by the Inflation Reduction Act.
Additionally, he inquired how the reduction of the $15 subsidy to $10 helps beneficiaries, given that it helps reduce costs, along with asking which, if any, prescription drugs may be dropped from the Medicare Part D to keep premiums low, and what will be done to ensure rural beneficiaries are not stuck with higher premiums.
In June, Gallego warned that 1.9 million people stood at risk of losing coverage under Medicare, saying, "Don't let Trump distract you from what he is trying to do. Cut millions from Medicaid to pay for tax cuts for the rich."
After all, Arizona has consistently maintained high-quality metrics, reporting to the Centers for Medicare and Medicaid Services 29 out of 30 adult quality measures and 26 out of 26 regularly reported child healthcare quality indicators in 2023.
