A veteran who fills his prescriptions through the VA may have seen the headlines this week about Medicare drug premiums going up in 2027 and possibly felt worried. For most veterans, there’s no need to get anxious, but for some, there might be. Basically, it all comes down to where you get your medication. The Centers for Medicare and Medicaid Services announced Tuesday that it will end a federal subsidy that has helped hold down prescription drug premiums for the past two years. Some believe this move could raise monthly costs for some Medicare beneficiaries starting in 2027, and a portion of the veteran community is among them. However, many veterans, including those who rely on the VA for their prescriptions, will not feel it at all. Here is who is affected, who is not, and what to check before the year is out. What the Government Did The program being eliminated is called the Part D Premium Stabilization Demonstration, and its purpose is stated plainly in its title. CMS created it

Published Aug 1, 2026, 3:00 AM EDT

"Saving money at the pharmacy often leads to much higher costs elsewhere in the healthcare system."

A veteran who fills his prescriptions through the VA may have seen the headlines this week about Medicare drug premiums going up in 2027 and possibly felt worried. For most veterans, there’s no need to get anxious, but for some, there might be. Basically, it all comes down to where you get your medication. The Centers for Medicare and Medicaid Services announced Tuesday that it will end a federal subsidy that has helped hold down prescription drug premiums for the past two years. Some believe this move could raise monthly costs for some Medicare beneficiaries starting in 2027, and a portion of the veteran community is among them. However, many veterans, including those who rely on the VA for their prescriptions, will not feel it at all. Here is who is affected, who is not, and what to check before the year is out.

What the Government Did

The program being eliminated is called the Part D Premium Stabilization Demonstration, and its purpose is stated plainly in its title. CMS created it in 2025 to steady the prescription drug premiums that private insurers charge under Medicare Part D, cushioning the market as it absorbed changes from the Inflation Reduction Act. The demonstration lowered the baseline used to set premiums and capped how much they could climb year to year. It reduced the average monthly stand-alone drug plan premium by about $26 in 2025 and $16 in 2026, according to the Medicare Payment Advisory Commission, and it cost roughly $9.8 billion across the two years.