By Julie Appleby, KFF Health News

Medicare enrollees who buy the optional Part D drug benefit may see substantial premium price hikes — potentially up to $50 a month — when they shop for next year’s coverage.

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Such drug plans are used by millions of people who enroll in what is called original Medicare, the classic federal government program that began in 1965 and added a drug benefit only in 2006. The drug plans are offered through private insurers, and enrollees must pay monthly premiums.

It’s not known whether insurers will pursue the maximum increase allowed, as premium prices for next year won’t be revealed until closer to open enrollment, which starts Oct. 15.

Increases are expected to mainly affect stand-alone Part D plans, not the drug coverage offered as part of Medicare Advantage, the private sector alternative to original Medicare. More on that later.

Policy experts say premiums are likely to go up for several reasons, including increased use of some higher-cost prescription drugs; a law that capped out-of-pocket spending for enrollees; and changes in a program aimed at stabilizing price increases that the Trump administration has continued but made less generous.

One thing is surer than ever, say many policy experts: Beneficiaries should not simply roll over their existing stand-alone Medicare drug plans.

“Everyone should shop plans in open enrollment,” said Stacie Dusetzina, a professor of health policy at Vanderbilt University Medical Center.

Here are three reasons prices would rise.

1. It’s the Spending!

Every year, insurers keep an eye on what they’re spending on drugs so they can build that into their premium estimates. Spending covers both the prices charged by drugmakers and volume, meaning how many people take the medications and how often.

And it’s up. Spending by insurers and government programs for prescription drugs in 2024 across the market grew more than 10%, which is slightly greater than in recent years, according to a research report published in last month’s issue of the American Journal of Health-System Pharmacy. Estimates are not yet available for this year’s trends.

Still, in 2024, researchers found that drug prices overall decreased slightly. Spending rose because of drugs coming on the market and increased utilization, especially for pricey weight loss drugs and another category of medications that treat various autoimmune conditions, such as rheumatoid arthritis.

Such increased use is evident in Medicare. Many beneficiaries, for example, are treated for autoimmune conditions. And even though Medicare doesn’t cover treatment for weight loss, many members have diabetes or other conditions that a new type of weight loss drugs can treat.

The Trump administration, according to The Washington Post, is considering a five-year pilot program in which Medicare Part D plans could voluntarily expand access to the drugs, which can cost more than $1,000 a month without insurance. Details have not yet been provided, but the pilot program would not begin in Medicare until 2027.

Another wild card for insurers is the Trump administration’s tariffs on businesses that purchase products made overseas, which could boost drug prices because the U.S. imports a lot of its pharmaceuticals. Much, however, remains unknown about whether drugmakers will pass along any additional tariff costs to consumers.

So, while rising spending is one factor, it isn’t the only reason next year’s premium prices are expected to go up.

2. New Out-of-Pocket Caps for Consumers

Changes made to Medicare aimed at helping people with high out-of-pocket costs for expensive medications may be a bigger factor.

Here’s why: Starting this year, Medicare enrollees have a limit on how much they must pay out-of-pocket for prescription drugs. It’s capped at $2,000, a threshold that will rise each year to cover inflation.

Lawmakers in Congress set those changes in the Inflation Reduction Act under President Joe Biden. The law also shifted a larger share of the cost of drugs used by Medicare beneficiaries from the federal program to insurers.

That $2,000 cap is a big change from previous years, when people taking expensive drugs had a higher threshold to meet annually and were on the hook to pay 5% of the drug’s cost even after meeting that amount. Those additional 5% payments ended last year under the provisions of the IRA.

Before that law passed, “people would spend $10,000 or $15,000 out-of-pocket each year just for a single drug,” Dusetzina said. “The Inflation Reduction Act was necessary to make Part D proper health insurance, but there’s a cost to do so.”

While the cap is a big help for affected consumers, the reduced amounts paid by some beneficiaries — coupled with the cost shift to insurers — could lead plans to spread their increased expenses across all policyholders through higher premiums. A growing number of health plans have also begun to require enrollees to pay a percentage of a drug’s cost, rather than a flat-dollar copay, which can lead to larger-than-expected costs at the pharmacy counter, Dusetzina said.

While consumers not currently taking high-cost specialty drugs may not see a benefit in the $2,000 cap initially, they might one day, say policy experts, who note that drugmaker prices continue to rise and that enrollees could fall ill with a condition like cancer or multiple sclerosis for which they need a very high-priced drug.

“It’s important to think not just in context of those groups who hit the cap every year, but also people are paying more in premiums to protect their future selves as well,” said Casey Schwarz, the senior counsel for education and federal policy at the Medicare Rights Center, an advocacy group.

The new prescription drug cap and other changes apply to both the stand-alone Part D drug plans and Medicare Advantage plans. But those Medicare Advantage plans are not expected to increase the drug portion of their premiums, partly because the private sector plans are paid more per member than what it costs taxpayers for the traditional program.

That means Advantage plans have far more money to add benefits, such as vision and dental coverage, which traditional Medicare does not include, or to use them to cushion the impact of rising spending on drug costs, thus limiting premium increases.

Those additional benefits are advertised to attract customers to Medicare Advantage, which also sometimes offers plans with minimal or no monthly premium costs. There are other differences between traditional Medicare and private sector plans. For example, Advantage members must stick to doctors and hospitals in the plan’s networks, and they may face more prior authorization or other hurdles than in the traditional program.

The growing difference between premiums — fueled by the extra rebates flowing to the private sector plans — “is increasingly tilting coverage toward Medicare Advantage and making traditional Medicare plus a stand-alone PDP [prescription drug plan] unaffordable for many enrollees,” said Juliette Cubanski, deputy director of the program on Medicare policy at KFF, a health information nonprofit that includes KFF Health News.

3. Trump Administration Reduced Funding Meant To Slow Premium Growth

The final factor in the premium increase equation is a program set up to slow the rise of premiums in stand-alone Part D plans.

It began under the Biden administration to offset premium increases tied to changes in the Inflation Reduction Act by temporarily injecting additional federal dollars to help insurers adjust to the new rules.

That plan sent just over $6 billion this year to Part D insurers.

And it had an effect.

The average monthly premium for a stand-alone Part D drug plan dropped 9%, from $43 last year to $39 this year, according to KFF, even when factoring in that some plans raised prices by up to $35 a month, the maximum increase allowed under the stabilization plan for this year.

In a memo released in late July, the Trump administration said it would continue the program for next year, while shaving about 40% of the funding. A government official told The Wall Street Journal that the administration felt that keeping the full funding would have mainly benefited the insurers and cost taxpayers an “enormous, excess amount.”

The stabilization effort next year will send $10 a month per enrollee to Part D insurers to help keep premiums in check, down from $15 this year. Among other changes, it allows insurers to raise premiums by as much as $50 a month, up from the $35 allowed this year.

That would be a substantial increase, Cubanski noted, although it is not clear just how many insurers would pursue the full amount.

“We did see some plans this year were taking premium increases of that $35 amount in 2025, and I fully expect we will see some plans with increases up to $50 a month” next year, she said.

Another reason to take a close look at all the options once open enrollment begins.

©2025 KFF Health News. Distributed by Tribune Content Agency, LLC.

JACKSON HOLE, Wyo. — Federal Reserve Chair Jerome Powell on Friday opened the door ever so slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the impact of tariffs and other policies on the economy.

In a high-profile speech that will be closely watched at the White House and on Wall Street, Powell said that there are risks of both rising unemployment and stubbornly higher inflation. That puts the Fed in a tough spot, because it would typically cut its short-term rate to boost hiring, while keeping it high — or raising it — to fight inflation.

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“The stability of the unemployment rate and other labor market measures allows us to proceed carefully as we consider changes to our policy stance,” Powell said in prepared remarks. That suggests the Fed will continue to evaluate jobs and inflation data as it decides whether to cut rates, including at its next meeting Sept. 16-17.

“Nonetheless, with policy in restrictive territory, the baseline outlook and the shifting balance of risks may warrant adjusting our policy stance,” he added, a more direct sign that Powell is considering a rate cut than he has made in previous comments.

Still, Powell’s remarks suggest the Fed will still proceed carefully in the coming months and will make its rate decisions based on how inflation and unemployment evolve in the coming months. That may frustrate financial markets, which have hoped for clearer signals of the Fed’s next moves, and President Donald Trump, who has castigated Powell for not lowering rates sooner.

Powell spoke at the Fed’s annual economic symposium in Jackson Hole, Wyoming, a conference with about 100 academics, economists, and central bank officials from around the world.

Powell spoke as markets largely expect a rate cut in September, according to futures pricing, though those odds have slipped this week. Trump has repeatedly called for rate cuts, arguing there is “no inflation” and saying that a cut would lower the government’s interest payments on its $37 trillion in debt.

Trump and his allies have ramped up attacks on the Fed, including this week by calling on a Fed governor, Lisa Cook, to resign, after a Trump official alleged she may have committed mortgage fraud.

By KATHERINE ROTH

NEW YORK (AP) — Summer can be a time of big transitions for kids. It’s often the season for moving to a new home or preparing for a different school. And that brings worry and stress.

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Parents and families can help make things feel more manageable. If kids feel supported, they might even look forward to some of the changes and gain confidence, experts say.

“When routines, familiar places and even knowing where things are in the house are suddenly gone, it forces youth to relearn their daily lives from scratch,” which can be stressful, says Victoria Kress, a professional counselor and president of the American Counseling Association.

At the same time, “this can invite exciting opportunities for growth,” she says.

Author Nadine Haruni’s book “Freeda the Frog is on the Move” aims to help school-age kids deal with moving. Haruni, who guided her own family through moves and changes, tells the story of a mother frog who helps her little tadpoles adjust as they leave their hometown and settle in a new one.

“It’s really important to recognize that transitions take time and that is totally normal. It’s OK to feel nervous and sad and anxious and maybe all of those things all at once, and even adults feel that way sometimes,” says Haruni.

“If you listen, you might be surprised. What matters to a child is not always what you might think it is,” she says.

Moves can be especially difficult if accompanied by other significant changes, such as a death, divorce or loss of family income.

Haruni’s book was inspired by her family’s big, multifaceted transition. She was moving from Manhattan to New Jersey with her then-5-year-old daughter and 8-year-old son, and getting married all in the same week, a big transition for her kids and three teenage stepdaughters. In addition, the kids were starting at a new school the following week.

“The kids were very sad and worried at first. Life is about change, and it’s really hard to address that sometimes. Luckily, the kids discovered that they loved having more space and, like the tadpoles in the book, they happily adapted,” she says.

Here are some tips to reduce the stress of a move or other big transition for kids:

Talk it out

“Communicating and listening can alleviate a lot of anxiety,” Haruni says. “Let kids share their feelings and know that they are being heard, so they know that they matter. That really helps them feel like they have some control.”

Explain why a move is necessary, and preview what’s ahead. Discuss the destination ahead of time, especially its good points. Familiarity can help kids feel more confident, the experts say.

Even sharing some photos or a map is helpful in easing jitters.

“Can they meet a few kids in the new neighborhood ahead of time?” Haruni asks.

Involve kids in the move itself

“Involving children in age-appropriate moving tasks — such as packing their own belongings or helping to choose new room decorations — can give them a sense of control and security during an uncertain time,” says Kress.

Kids can help plan meals, organize their space or continue family traditions.

“Frame it as an adventure,” says Haruni. “Let them help choose things for their new room if they are moving, but also bring a few items that feel familiar and comforting.”

Keep up daily routines

Sticking to some daily routines creates structure when things feel new and scary.

“The thing with moves is they disrupt everyone’s life. Too much change at once discombobulates everybody, so keeping meals at the same time and bedtime rituals the same can really help a lot,” says George M. Kapalka, a clinical psychologist and professor at the California School of Professional Psychology.

Arrange common areas similarly to how they were before the move, says Kress. Place favorite toys, blankets or pictures where your child expects to find them.

Consider getting help from a professional

Adapting to change takes time, and patience. Let kids know that’s normal, that they will get through it, and that they are being heard and have some control over things, says Haruni.

And know when to seek help.

“Some sadness, worry, or adjustment difficulties are normal after a move. But if symptoms persist for more than a few weeks, worsen over time, or disrupt daily life, then counseling is advisable,” says Kress.

By James Royal, Ph.D., Bankrate.com

The cryptocurrency industry has lately begun to heavily promote tokenized stocks, but what exactly are they? More importantly, what advantages do tokenized stocks offer — especially when investors already have safe, no-cost fractional share trading at many brokers?

A tokenized stock is a fancy way of saying that ownership of a stock can be transferred via blockchain, the technology behind cryptocurrency. Tokenizing, or digitizing, assets such as stocks, ETFs and other securities allows them to be traded on a specialized digital exchange and potentially directly between investors without the need for an exchange. These tokens are held in a digital wallet, much as crypto coins are, similar to a traditional brokerage account.

“The news cycle for crypto is all about representing traditional financial assets on a blockchain,” says Hilary Allen, professor, American University Washington College of Law. But Allen points out that investors and financial markets will endure major costs for doing so: “There are a lot of protections that are given up by this move.”

In order to establish a tokenized stock, these steps are needed:

— Taking custody of the asset: The asset that will be tokenized needs to be held in custody by a custodian, whose job is to safeguard it on behalf of the token creator.

— Creating the token: A financial institution such as an investment bank or fintech company then creates the digitized token, which corresponds to the asset in custody.

— Setting up smart contracts: Each token is programmed with self-executing smart contracts that give the token’s owner the same rights as stock ownership, including dividend distributions and voting rights, among others.

Once the stock is tokenized, traders can exchange it among themselves on crypto platforms, other decentralized finance platforms or even potentially a traditional stock brokerage. For example, crypto exchange Kraken has created tokenized stocks that it calls xStocks, and now allows trading in 60 major stocks. Meanwhile, brokerage Robinhood launched token trading in the European Union in June, offering access to more than 200 U.S. stock and ETF tokens.

Asset managers BlackRock and Franklin Templeton already offer tokenized money market funds. Goldman Sachs and BNY are teaming up to launch their own tokenized money market funds, too. More firms are exploring the idea of tokenized stocks.

In short, you could think of a tokenized stock as one that trades via blockchain. So what’s the big deal for individual investors? The cryptocurrency industry is breathlessly hyping this as a huge leap forward – as it has done for crypto coins – but the benefits are modest for individual investors, especially buy-and-hold types, and the risks of tokenized stocks are high. In fact, the best stock brokers already offer many of these same benefits to investors at no cost.

The crypto industry touts the following benefits of tokenized stock trading, many of which are already features at top brokers or may soon be features.

Benefits of tokenized stocks

— Increased accessibility through fractional shares: Tokenized stocks let investors trade portions of a share, meaning that high-priced stocks are accessible to even those with a little money.

— Lower cost: The crypto industry touts the potentially lower cost of transactions by eliminating intermediaries via blockchain.

— Transparency: The industry says thatby recording ownership on the blockchain, tokenization ensures that ownership is established.

— Security: Proponents say that blockchain-enabled trading also increases security because ownership is irrevocably established on the blockchain.

— 24/7 trading: Because tokenized stocks are held on a blockchain, they can be traded at any hour.

— Immediate settling of trades: Proponents also point to the immediate settling of trades via tokenized stocks, in contrast to next-day settlement in the U.S.

— More direct access between investors and firms: Tokenization may bypass existing financial intermediaries, letting companies raise money more directly from investors.

Others note the serious risks in tokenizing stocks, particularly in the area of investor protection.

Risks of tokenized stocks

— Potentially irrevocable transactions: Like cryptocurrency transactions, a tokenized stock transaction may be irrevocable. Once it’s done, it’s done, and it may be all but impossible to undo.

— Uncertain legal protections: The legal treatment of tokenized stocks is way behind where the crypto industry is trying to go, exposing investors to plenty of risks. For example, who is considered the issuer of a tokenized stock: the firm that tokenized it or the stock’s original issuer? What happens if an asset is hacked?

— Inflexible smart contracts: Smart contracts programmed into tokenized stocks will not cover all circumstances, says Allen. “It’s not clear how they’ll operate in unexpected environments.”

— Circumventing investor protections: Private investments are private partially to protect investors, not merely to limit investments to the well-heeled, but tokenizing stocks can allow financial players to get around the rules. “It’s absolutely built as an end run around securities laws,” says Allen. “Crypto is built as an end run around securities laws.”

— Loss of trust in American financial markets: One of the potential long-term effects of not enforcing existing securities laws is the erosion of trust in American capital markets. If securities laws aren’t enforced or are enforced inconsistently, then markets simply become a place to rip off investors.

Bankrate reached out to Kraken and Robinhood for further comment but has not heard back.

What’s behind the push for tokenized stocks?

The crypto industry and some traditional financial institutions have talked a big game about tokenization of stocks and some players have moved toward tokenization. But what’s in it for individual investors? Many of tokenization’s supposed benefits touted by the crypto industry are already available for individual investors in the current system.

— Fractional shares already exist: Individual investors can already access fractional shares — on thousands of stocks and ETFs — at the best brokers for fractional shares.

— Stock trading is already commission-free: For individual investors, trading stocks is already free at every major online broker, so there’s no added benefit to using tokenized stocks.

— Transparency and security: Existing brokers already have high levels of security with a proven security process. In fact, it’s the crypto exchanges and other DeFi platforms that have been beset by lax security, fraud and theft.

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— After-hours trading: Many brokers already offer after-hours, overnight and pre-market trading on existing stocks. While this is not 24/7 trading, brokers have been expanding access in recent years. Moreover, all-hours access to trading does not benefit long-term investors, who build wealth through the long-term success of the underlying business. Study after study shows that active trading underperforms passive investing.

— “Democratization” of investing: Proponents of tokenization say that it gives access to private investments that are being hoarded by the wealthy. But giving a means to trade a stock — tokenizing it — does not mean that anyone will want to sell it to you. In fact, you should be skeptical when someone wants to sell you what they say is a great investment. (If it’s such a great investment, why are they letting you in on it? It’s not out of the kindness of their heart.)

So, while tokenization may offer a few incremental benefits to individual investors, albeit with significant risks, what’s the real driver of tokenization? Who is actually going to benefit here? It’s the crypto industry trying to make inroads into traditional finance, say experts.

“The crypto industry is waging a multi-pronged battle to get integrated into the financial system,” says Allen. The industry is working to “attract deep pockets” and bring more money into the fold, and tokenized stocks are part of that push, she explains.

So much of the crypto world is about hyping digital currency as “the next big thing.” Part of that process is projecting bombastic price targets for Bitcoin and other cryptocurrencies, ones that are always rising over time. Such hype can make cryptocurrency seem inevitable.

As with cryptocurrency, one of the biggest use-cases for stock tokenization is (illegally) getting around existing laws (in this case, securities laws). So the full-bore adoption of stock tokenization has many potentially destructive effects, including the erosion of investor protections and robust securities laws that protect financial markets. Without these laws, it’s “scammer take all.”

“Investors lose the benefit of the securities laws,” says Allen. She points out that what the crypto industry wants to run roughshod over are the very laws that they claim are roadblocks to their profits. ”We saw what happened in the 1920s and the lack of securities laws.”

Bottom line

Tokenization presents significant risks to individual investors and the financial markets as a whole, while offering few benefits to investors that don’t already exist. Those who try out tokenized stocks should remain wary of their many risks amid an uncertain legal framework.

©2025 Bankrate.com. Distributed by Tribune Content Agency, LLC.