A temporary subsidy that helped Tulsans on Medicare afford prescription drugs is going away. This means Part D premiums could get about $10 more expensive on average, according to the Oklahoma Insurance Department.
More than 250,000 Tulsans use Medicare, most of whom opt into the Part D plan for covering prescription drug costs. The subsidy, which sunsets next year, lowered prices so insurance companies can better understand what their real cost of drugs were.
“I think it was an appropriate temporary subsidy program for the insurance companies, but now they’ve got better data and they know how to price this stuff going forward,” said Mike Rhoads, deputy commissioner at the Oklahoma Insurance Department.
The average Medicare Part D premium is between $40 to $60 a month. This subsidy helped Tulsans with both Part D coverage and Medicare Advantage, also known as Medicare Part C. Read our story about the changes to Medicare this year for more information about plans.
In 2025 and 2026, insurance companies received $10 billion to lower drug costs. Rhoads said it saved people around $15 to $18 a month. On top of that, out-of-pocket costs got capped at $2,100 this year, meaning your health insurance covered prescription drugs after that quota was met. Rhoads said people who need a large amount of medications may cap out early on.
This subsidy went into effect under the Biden administration in 2024 and was set to expire at the end of this year. Congress opted not to renew it.
If you can’t afford a premium increase, you might qualify for the state’s Extra Help program. It covers your monthly Medicare Part D premium payments, or at least knocks the price down to just a few bucks, Rhoads said.
To be eligible for Extra Help, your yearly income must be less than $23,000, and other savings or assets — like a home — factor in as well. Call 800-763-2828 or 405-521-6628 for assistance with applying. You can also visit the website for more information. LIFE Senior Services in Tulsa also offers an assistance program to help people navigate the various Medicare services.
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