The Trump regime moved to end a Medicare prescription drug subsidy program that has held down premiums for millions of seniors
The subsidy’s end could raise Part D premiums for some enrollees in 2027, though the Trump regime has not detailed how many people will be affected or by how much
Connecticut’s Senate Public Health Committee chair warned the change could force seniors to choose between medication and other basic needs
Following the end of Affordable Care Act subsidies that disconnected millions from health care plans nationally at the end of 2025, the Trump administration is following through with their plns to end a prescription drug insurance subsidy program that is expected to increase Medicare premiums for seniors in 2027.
The Centers for Medicare and Medicaid Services announced plans to sunset the Medicare Part D Premium Stabilization Demonstration at the end of 2026. The program, put in place by the Biden administration, was in effect in 2025 and 2026, providing health insurers with subsidies that kept the price of drug premiums down for patients on Medicare, the New York Times reported.
Without the subsidies, millions of seniors will likely need to pay hundreds of dollars more each year for their prescription drug plans.
“Our seniors deserve stability, dignity and the peace of mind that they will never have to choose between filling a prescription, buying groceries or paying their utility bills,” said Senator Saud Anwar, Connecticut’s Senate Chair of the Public Health Committee. “We must put patients before politics and protect access to lifesaving medications.”
CMS Administrator Dr. Mehmet Oz said many patients will see their premiums rise by “less than $10” per month, but the federal government has not yet explained how many people will need to pay more or how much more they will pay. More information is not expected to be released until September.
About 25 million Americans have stand-alone plans for Part D drug coverage, the Times reported, paying $36 per month on average.
When the subsidies went into place, average plans cost $43 per month in 2024, meaning the plan seemed to reduce consumer prices by an average of $7 per month or $84 per year, USA Today reported. In that time, Medicare Part D enrollment grew by about 2 million people.
Under the new proposal, a Kaiser Family Foundation director said, Part D recipients will likely see a larger premium increase for drug coverage in 2027.
By Joe O’Leary