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Trump administration plans to end Medicare drug plan subsidy, WSJ reports
CMS says insurers have enough experience to price plans without the subsidy, and most beneficiaries would see increases of less than $10 a month.
- 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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Trump administration is ending a Medicare drug subsidy program
NEW YORK — Millions of older adults on Medicare prescription drug coverage could face steeper monthly costs in 2027, after the Trump administration concludes a temporary subsidy program that has helped offset premiums for the past two years.
Coverage Details
Total News Sources232
Leaning Left48Leaning Right27Center130Last UpdatedBias Distribution63% Center
Bias Distribution
- 63% of the sources are Center
63% Center
L 24%
C 63%
13%
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