July 28, 2026
The Wall Street Journal reports:
The Trump administration plans to end a subsidy program that helped hold down premiums for Medicare drug plans, a move that could leave many seniors facing higher rates for their prescription coverage next year.
The move will eliminate a program that is giving insurance companies an estimated $3.6 billion in subsidies this year to blunt increases in premiums for the Medicare prescription plans, known as Part D. The program will end after 2026, according to administration officials.
High drug costs are a perennial issue—especially for seniors on fixed incomes—and healthcare affordability is expected to be a focus in the midterm elections. Roughly 25 million people have Part D plans, and they will learn about their 2027 rates in the fall. Medicare drug coverage premiums are rising because the plans have been hit by growing expenses for GLP-1 medications and other specialty drugs.
Read the full article.
Tag: Drug Costs
Young Wisconsin man dies from asthma attack after price of inhaler skyrocketed nearly $500: lawsuit
A young Wisconsin man died from an asthma attack after the price of his inhaler skyrocketed nearly $500, according to a lawsuit filed by his family.
From birth, Cole Schmidtknecht suffered from chronic asthma that he treated with an Advair Diskus inhaler that cost him no more than $66.
That changed last year when OptumRx, a subsidiary of UnitedHealth Group, decided it would no longer cover the inhaler Schidtknecht used for a decade.
On January 10, 2024, Schmidtknecht, 22, went to his local OptumRx-Walgreens pharmacy in Appleton, Wisconsin, expecting to fill his usual prescription when he was advised by Walgreens that his medication was no longer covered by his insurance and would cost him $539.19 out of pocket, according to the lawsuit.
He was given no notice and, the lawsuit said, Walgreens did not offer him a generic alternative “and further told Cole that there were no cheaper alternatives or generic medications available.”
Unable to afford the inhaler, he left the store without it.
“Over the next five days, Cole repeatedly struggled to breathe, relying solely on his old ‘rescue’ (emergency) inhaler to limit his symptoms, because he did not have a preventative inhaler designed for daily use,” the lawsuit continued.
On January 15, 2024, Cole suffered a severe asthma attack and never woke up. He was pronounced dead January 21.
His parents are now suing Walgreens, its parent company Boots Alliance and Optum Rx, the pharmacy benefits manager, for negligence.
“Defendant OptumRx had a duty to not artificially inflate prescription drug prices for medications such as Advair Diskus for insured patients, including Cole Schmidtknecht, making them so unaffordable that patients could not obtain the medications their physicians prescribed,” the lawsuit said. “Walgreens Defendants failed to exercise reasonable care in that they knew, or should have known, of the unreasonable risk of harm to asthmatic patients, including Cole Schmidtknecht, that would result from their failing to provide him with Advair Diskus or a medically equivalent alternative medication at an affordable price at the point of service.”
The lawsuit comes less than two months after the assassination-style killing of United Healthcare CEO Brian Thompson, whose death renewed debate about how health insurance companies treat their customers.
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