The Trump administration is ending a Medicare drug subsidy program. Here’s how it could affect costs
Summary
The Trump administration will end a temporary subsidy program that helped lower monthly costs for Medicare Part D prescription drug plans. This change could cause some older adults to pay more in 2027, although officials say the average increase will be small.Key Facts
- The subsidy program was started by the Biden administration in 2024 to reduce drug costs under Medicare Part D.
- Ending the program is expected to save taxpayers about $3.6 billion in 2026.
- Most people with Medicare Part D may see their premiums increase by less than $10 per month.
- About 25 million Americans are on Medicare Part D plans.
- Medicare Part D beneficiaries paid an average of $36 per month in premiums this year with the subsidy.
- The subsidy reduced the average premium by $16 per month in 2026.
- CMS will release the exact 2027 premium rates in September, before the November elections.
- Administration officials say the decision will protect taxpayer money and that affordable plans will still be available.
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