Medicare has announced another round of changes — and some of them could have a big impact on your coverage, costs, and care. The Centers for Medicare & Medicaid Services (CMS) released seven major updates that range from behind-the-scenes policy shifts to bold new technology projects.
While some of these announcements might sound technical, the fine print reveals changes that could make a real difference — especially if you’re in a low income household, live in a rural area, or rely heavily on your Medicare benefits.
A New “Cooperation” Strategy for Medicare Changes
CMS and the Food and Drug Administration (FDA) recently announced they will work directly with industry leaders to make certain changes, instead of waiting for Congress or going through the slow formal rulemaking process.
They say this approach can make improvements happen faster by inviting companies to the table and reaching voluntary agreements. While this might speed up progress, it also means fewer opportunities for public debate and oversight.
Big Tech Joins Medicare Data-Sharing Initiative
CMS has invited over 60 major technology companies — including Amazon, Apple, Google, OpenAI, and Anthropic — to help create a national health data network. The goal is to allow patients and providers to share health information securely and seamlessly.
This project could mean:
- One secure login to see all your medical records in one place
- Easier sharing of information between your doctors and specialists
- New tools to track chronic conditions, check symptoms, and compare plan options
While this could save time and cut paperwork, having so much personal health data in one place also raises concerns about privacy and security.
Your Chance to Simplify Medicare
CMS is asking for public input on how to make Medicare easier to use and less expensive to administer. They’re looking for ideas on eliminating outdated rules, cutting unnecessary paperwork, and modernizing care.
If you want to share your ideas, you have until September 15, 2025. Submit your comments on the CMS request page and select beneficiary/patient/caregiver unless you work in healthcare. Avoid including personal details, as comments may be made public.
New Nursing Home Penalties Starting in 2028
In 2028, Medicare will begin penalizing skilled nursing facilities if residents are hospitalized for issues CMS believes could have been prevented. At the same time, CMS is ending extra payment help for facilities that serve more high-risk or low income patients.
These changes could lead some facilities to avoid admitting patients with complex health needs, making it harder for vulnerable individuals to find care.
Funding Cuts for Rural and Low Income Hospitals
CMS will end a payment boost that has helped small and rural hospitals stay open. This could increase the risk of closures in underserved areas.
Hospitals will also no longer be required to ask patients about food, housing, or utility needs — a change that might make it harder to connect patients with community resources.
Medicare Part D Premium Caps
Thanks to the Inflation Reduction Act, Medicare Part D drug plan premiums cannot rise more than 6% per year through 2029. CMS has already rejected a proposed 2026 plan for attempting a higher increase.
Official 2026 plan prices and drug lists will be released in mid to late September, just before open enrollment begins.
New Digital Tools for Medicare Users
CMS is planning a digital Medicare ID, a “Medicare App Store” with approved health tools, and AI helpers to guide you through plan selection, symptom checking, and chronic condition management.
While these tools could make Medicare more accessible, experts caution that AI should not replace direct communication with human advisors.
Help Navigating Your Medicare Options
If you’re feeling unsure about how these changes may affect you, our sponsor Chapter can help. They provide free, one-on-one Medicare guidance to help you choose the best plan for your needs.
Chapter also offers Low Income Relief readers a complimentary copy of their bestselling book It’s Not That Complicated, which explains how to get the most out of your Medicare benefits. You can claim your free copy.
Relief Recap
Medicare is moving toward faster, industry-led changes that could cut red tape — but may also limit public input. Funding cuts could put more pressure on hospitals and nursing homes serving vulnerable populations. At the same time, new technology could make it easier to manage your benefits, if privacy concerns are addressed.
If you’re dual eligible, remember you can change your plan up to once every three months — you don’t have to wait for open enrollment. Talking with a licensed Medicare advisor can help you find the best coverage and avoid costly mistakes.
The views and opinions expressed in the content on this website are solely those of the content creators and do not necessarily reflect the views, opinions, or positions of the Social Security Administration, Medicare, Chapter, or its affiliates. Chapter makes no representations or warranties regarding the accuracy, completeness, or reliability of the information provided. All content is intended for informational, educational, or entertainment purposes only and should not be interpreted as official positions of the Social Security Administration, Medicare, Chapter, or its affiliates. Chapter disclaims any liability for actions taken based on this content.
If you need assistance with Medicare, please reach out to Medicare, your local State Health Insurance Program (SHIP), your current Medicare insurance agent/broker/plan, or contact our Medicare partner, Chapter, at 417-319-2139 or visit their website at https://lirlinks.com/chapter. Chapter: Memoir, Inc. d/b/a Chapter is a privately owned, data- and technology-enabled advisory service helping older Americans navigate retirement. Insurance agency services are provided by Chapter Advisory, LLC, a licensed health insurance agency and wholly owned subsidiary of Memoir, Inc. In California, Chapter Advisory, LLC does business as Chapter Insurance Services (Lic. No. 6003691).Chapter and its affiliates are not connected with or endorsed by any government entity or the federal Medicare program. Chapter Advisory, LLC represents Medicare Advantage HMO, PPO, and PFFS organizations as well as stand-alone prescription drug plans with Medicare contracts. Enrollment depends on the renewal of those contracts. While Chapter maintains a comprehensive database of Medicare plans nationwide and assists in searching all options, Chapter has contracts with many, but not all, plans. Therefore, Chapter does not offer every plan available in your area. Chapter recommends plans even if they are not directly offered through Chapter. For complete Medicare plan options, please visit Medicare.gov, call 1-800-Medicare, or contact your local SHIP office.
