20 CFR § 418.3505 - How would an increase, reduction or termination affect you?

---
identifier: "/us/cfr/t20/s418.3505"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "20 CFR § 418.3505 - How would an increase, reduction or termination affect you?"
title_number: 20
title_name: "Employees' Benefits"
section_number: "418.3505"
section_name: "How would an increase, reduction or termination affect you?"
chapter_name: "SOCIAL SECURITY ADMINISTRATION"
part_number: "418"
part_name: "MEDICARE SUBSIDIES"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
regulatory_source: "70 FR 77675, Dec. 30, 2005, unless otherwise noted."
cfr_part: "418"
---


# 418.3505 How would an increase, reduction or termination affect you?

(a) An *increase* in your subsidy means that you would be able to pay a lower premium to participate in the Medicare Part D prescription drug program. An increased subsidy may also result in a reduction in any deductible or copayments for which you are responsible.

(b) A *reduction* in your subsidy means that you would have to begin to pay a premium or a higher premium to participate in the Medicare Part D prescription drug program. You may also have to begin to pay a deductible and higher copayments or increase the amounts of these payments.

(c) A *termination* means that you would no longer be eligible for a subsidy under the Medicare Part D prescription drug program.