Costs & IRMAA
KFF: The 90 Dollar Medicare Part B Rebate Skips About 35 Million Advantage Enrollees, and Projected 2027 Premium Growth Could Absorb Most of the Benefit
A KFF analysis published today finds that the one-time payment leaves out the roughly 35 million beneficiaries in private Medicare Advantage plans and that a projected 2027 Part B premium increase could consume the bulk of the 90 dollar gain for those who do receive it.
By the Goodsurance editorial teamOctober 5, 2026
KFF published a detailed look at the Trump administration's 90 dollar Part B premium rebate on October 5, 2026, and found two things Medicare enrollees should understand before assuming the payment provides lasting financial relief.
The first is eligibility. The rebate is limited to people in Original Medicare who do not pay an income-related monthly premium surcharge and do not receive premium assistance through Medicaid. Roughly 35 million people enrolled in private Medicare Advantage plans are excluded. Because Medicare Advantage beneficiaries receive their Part B benefit through a private insurer rather than directly from the federal program, they are outside the pool the rebate was designed to cover. About 21 million Original Medicare enrollees who do qualify should see a direct deposit around October 8.
KFF: The one-time 90 dollar Medicare rebate bypasses 35 million Medicare Advantage enrollees, and projected 2027 cost increases may absorb most of the benefit for those in Original Medicare who do receive it.
The second issue is scale. KFF notes that the 2026 annual cost of the standard Part B premium runs about 2,435 dollars. The projected 2027 annual increase is roughly 79 dollars, meaning that cost growth alone could absorb most of the one-time 90 dollar payment for the enrollees who do receive it. KFF also points to potential 2027 increases in standalone Part D drug plan premiums and in Medigap supplemental coverage, which averaged about 2,600 dollars a year in 2026.
KFF also draws a historical parallel, noting that a similar lump-sum Medicare benefit payment was proposed during President Trump's first term but was not implemented at that time.
The 2027 Annual Enrollment Period opens October 15 and runs through December 7. Comparing plans during that window may help enrollees find coverage that better manages their projected 2027 out-of-pocket costs.
In plain words
The government is sending a one-time 90 dollar payment to some Medicare members in October. Not everyone gets it. About 21 million people in Original Medicare will receive the money by direct deposit around October 8. But about 35 million people in Medicare Advantage plans will not receive anything.
A health research group called KFF studied whether the 90 dollars really helps. Its conclusion is that the benefit may not last. In 2026, Original Medicare Part B costs about 2,435 dollars a year. KFF projects Part B premiums could go up by about 79 dollars in 2027. If that happens, most of the 90 dollar one-time payment would be used up just covering that increase. KFF also says other Medicare costs could rise in 2027, including premiums for drug plans and for Medigap supplement plans.
If you are in a Medicare Advantage plan, you are not receiving the 90 dollars. That is because Advantage plans work differently from Original Medicare.
Medicare Open Enrollment starts October 15 and ends December 7. During that time you can compare 2027 plans at Medicare.gov and may find options that lower your costs for next year.
Understand the basics first
Source: KFF
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