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Enrollment & timing

Drug Plans Have Until August 11 to Waive a Small Premium Gap That Could Keep Low-Income Members Enrolled

With today marking the close of the 2027 Part D rebate reallocation window, a five-day period opens Friday for sponsors to declare they will absorb a premium difference of up to 2 dollars rather than trigger automatic reassignment for their Extra Help members.

By the Goodsurance editorial teamAugust 6, 2026

Following the close of the 2027 Part D rebate reallocation window on August 6, 2026, Medicare drug plan sponsors will have from August 7 through August 11 to declare participation in the de minimis provision for contract year 2027, according to the July 28, 2026 Parts C and D announcement published by CMS.

The de minimis amount for 2027 is 2 dollars per month. Under this mechanism, a Part D plan whose premium would otherwise exceed the regional low-income premium subsidy benchmark by 2 dollars or less may voluntarily waive the difference. Plans that participate can continue enrolling beneficiaries who receive the Low Income Subsidy, also known as Extra Help, at zero premium.

Drug plan sponsors have until August 11 to waive a 2-dollar premium gap, which could protect low-income Medicare enrollees from automatic reassignment to a new plan.

If a plan does not elect the de minimis provision and its premium exceeds the benchmark, its Extra Help members face automatic reassignment to a different qualifying zero-premium plan. Reassignment can mean switching to an unfamiliar plan with a new pharmacy network or a different drug formulary.

Extra Help assists beneficiaries with limited income and resources in paying Medicare drug plan premiums, deductibles, and cost sharing. Beneficiaries who are auto-reassigned receive a special enrollment period that allows them to choose a different plan if they prefer not to stay with the reassigned one.

CMS will incorporate de minimis elections into its plan landscape calculations before publishing the full 2027 premium and plan information in mid-to-late September.

In plain words

Drug plan companies have a few days starting Friday to decide if they will cover a small cost of up to 2 dollars a month so that their low-income members can stay in the same plan at no cost. Many Medicare enrollees get help paying for their drug plans through a program called Extra Help. If a plan's price goes a little over the allowed limit, the plan can choose to cover that gap. If it does not, those members may be automatically switched to a different plan. Plans have until August 11 to decide. Final information about 2027 plans will come out in September.

Understand the basics first

Source: CMS
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