The Trump administration is ending a temporary subsidy program that has helped offset premiums for Medicare Part D prescription drug coverage. This move could affect millions of older adults on Medicare, potentially leading to steeper monthly costs in 2027.
Impact on Seniors
The Centers for Medicare & Medicaid Services announced the conclusion of the program, which was initially implemented by the Biden administration in 2024 to lower patients’ Medicare Part D prescription drug costs. While federal officials insist the financial impact on Medicare beneficiaries will be minimal, the decision may have significant implications for many older adults who rely on these subsidies.
According to the healthcare research nonprofit KFF, Part D beneficiaries paid an average of $36 a month this year for their premiums with the subsidies in place. The subsidies offset the average premium by $16 in 2026, according to the federal Medicare Payment Advisory Commission (MedPAC). CMS Administrator Dr. Mehmet Oz stated that ending the subsidy program would prevent billions of taxpayer dollars from being funneled to insurance companies, with most Medicare beneficiaries seeing less than a $10-per-month increase.
Original reporting: KTBS 3 (Shreveport) — read the source article.
