Sponsor
Gus Bilirakis
Representative · R-FL
Representative · R-FL
The bill provides near‑term premium and out‑of‑pocket relief for Part D enrollees and stabilizes plan finances in 2027, but it raises federal spending now and risks future budget pressures or cost‑shifting to beneficiaries if not offset.
Medicare beneficiaries will pay lower Part D monthly drug-plan premiums in 2027 equal to the demonstrated average premium reduction.
Medicare enrollees with high prescription needs (people with chronic conditions) may face lower out-of-pocket monthly costs for their drug coverage in 2027.
Part D plan sponsors will receive guaranteed reimbursement for the credited amounts in 2027, reducing revenue uncertainty for plan sponsors/health systems.
Taxpayers and the federal budget will face higher federal spending in 2027 because HHS must pay sponsors the credited amounts.
Medicare beneficiaries and taxpayers could face reduced services or higher deficits in future budgets if lawmakers fund the credits without offsets.
Medicare beneficiaries could see costs shifted to them later if plans respond to a temporary credit by cutting benefits or raising future premiums.
Based on analysis of 2 sections of legislative text.
Creates a temporary 2027 premium credit for Medicare Part D enrollees equal to the average reduction observed in a prior Part D demonstration, and requires HHS to reimburse plans for the credited amounts.
Official title: To require the Secretary of Health and Human Services to establish a temporary premium credit for enrollees in prescription drug plans under the Medicare program.
Introduced August 31, 2026 by Gus Bilirakis · Last progress August 31, 2026
Provides a temporary premium credit for people enrolled in Medicare Part D prescription drug plans for calendar year 2027. The credit equals the average premium reduction observed in a prior Part D Premium Stabilization Demonstration, calculated using premium rates from January 1, 2025 through the last available day of 2026. Requires the Department of Health and Human Services to notify each enrollee’s drug plan sponsor of the credit amount, directs sponsors to charge 2027 premiums reduced by that credit (not below $0), and requires the Department to pay plan sponsors the credited amounts so plans receive the full premium net of the credit.