Trump Admin to Cut Medicare Part D as Projected Costs Skyrocket
CMS says most Medicare recipients will see premium increases of less than $10 a month after the subsidy ends, while coverage continues.
- On Tuesday, the Trump administration announced it will end a subsidy program that keeps Medicare Part D premiums stable after 2026, though prescription drug coverage itself remains available to beneficiaries.
- CMS Administrator Dr. Mehmet Oz justified the decision by claiming the program functioned as a corporate bailout rather than benefiting enrollees, arguing insurers now possess sufficient pricing experience without federal intervention.
- Oz projected most recipients will see premium increases of less than $10 per month, with some experiencing lower costs; KFF estimated some enrollees could face larger increases of up to $20 depending on their plan.
- Juliette Cubanski, director of KFF's program on Medicare policy, warned beneficiaries could face steep premium hikes next year without enhanced support, with final 2027 pricing details expected in September.
- About 56.1 million Medicare beneficiaries were enrolled in Part D plans as of February 2026, with roughly 34 million utilizing Medicare Advantage plans offered by UnitedHealth Group, Humana, and Aetna.
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64 Articles
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Administration to Pull Back on Premium Help for Part D Beneficiaries
On Tuesday, the Trump administration announced that it would end the Part D Premium Stabilization Demonstration at the end of 2026, a year earlier than originally envisioned. This program helped to keep premiums for standalone Part D plans in check as Inflation Reduction Act (IRA) Part D changes went into effect. IRA Shifted Costs From Beneficiaries to Plans The IRA restructured Part D, including by adding an inflation-adjusted out-of-pocket cap…
Trump Admin Is Now Cutting Your Medicare Benefits
The latest Trump administration effort to kill off Americans and/or make life impossibly unaffordable is its decision to end subsidies for Medicare prescription premiums. “Millions of older Americans could pay more for their prescription drug coverage next year,” The New York Times said. “For 2025 and 2026, the federal government gave health insurers billions of dollars in subsidies to help them keep down drug premiums for people on Medicare. Wi…
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