Drug prices & Part D
MedPAC September Meeting Finds IRA Changes Improved Drug Affordability for Enrollees but May Be Accelerating Overall Medicare Part D Spending
Medicare's congressional advisory commission opened its new study cycle in September finding that Inflation Reduction Act drug benefit changes have helped individual beneficiaries while putting upward pressure on total program spending and future premiums.
By the Goodsurance editorial teamSeptember 20, 2026
At its September 3 and 4 public meeting, the Medicare Payment Advisory Commission (MedPAC) kicked off its 2026 to 2027 study cycle with a review of Part D policy issues. Staff presented a finding that changes enacted by the Inflation Reduction Act of 2022, including the new cap on annual out-of-pocket drug spending, have improved affordability for individual Medicare enrollees but may be contributing to faster spending growth that puts upward pressure on premiums and overall program costs.
No formal recommendations were issued. The September session marks the first step in a longer, multi-meeting examination of how the redesigned Part D benefit distributes costs among enrollees, drug manufacturers, insurers, and the federal government.
MedPAC found the IRA helped lower drug costs for Medicare enrollees, but the same changes may be making total Medicare drug spending grow faster.
At the same meeting, a separate presentation reviewed the accuracy of Medicare Advantage risk adjustment payments at the plan level. Staff found that the current system could produce more accurate plan-level payments, a finding MedPAC has been building toward in previous reports.
Both topics are expected to generate detailed presentations and formal recommendations in upcoming commission meetings. Slide presentations and the full meeting transcript are available on MedPAC's website.
MedPAC advises Congress on Medicare payment policy but does not set policy directly. Its findings and recommendations often shape legislative and regulatory action in subsequent years.
In plain words
A group called MedPAC advises Congress on Medicare. In September 2026, MedPAC held its first meeting of the new study year. The group found that a recent law called the Inflation Reduction Act has helped lower drug costs for people on Medicare. That is the good news. The concern is that the changes may also make total Medicare drug spending grow faster, which could push premiums higher over time. MedPAC also said the way Medicare Advantage plans get paid may not be as accurate as it should be. No changes have been made yet. MedPAC will study these issues more over the coming year.
Understand the basics first
Source: MedPAC
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