Trump administration plans to end Medicare drug plan subsidy, WSJ reports
CMS said insurers have enough experience to price 2027 plans without support, and about 30% of beneficiaries may face monthly increases under $10.
- The Trump administration announced plans on Tuesday to end a subsidy program for Medicare Part D that provided roughly $3.6 billion to insurers, with the program not being renewed beyond 2026.
- Administration officials claimed the subsidies previously gave insurers incentives to raise premiums, while CMS stated insurers now possess sufficient experience to price plans independently without this support.
- Nearly 25 million people enrolled in standalone Medicare Part D plans will experience varied premium impacts, with about a quarter seeing flat or lower premiums next year and roughly 30% facing monthly increases of less than $10.
- CMS Administrator Dr. Mehmet Oz defended the decision as market stabilization, emphasizing that annual premium increases remain capped at 6% through 2029 under the Inflation Reduction Act to protect beneficiaries.
- Broader changes to federal health programs, including Medicare physician payment overhauls, accompany this subsidy termination, with CMS planning to release final 2027 plan details in September for beneficiary clarity.
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Trump administration to end Medicare drug subsidies, putting millions of Americans over 65 at risk of higher costs
NEW YORK, July 29 — US President Donald Trump’s administration plans to end federal subsidies for prescription drug plans offered to residents over 65 as part of its Medicare health insurance programme, The Wall Street Journal reported on Tuesday.The change could leave some 25 million senior citizens facing serious cost increases for prescription drugs, the report said.Citing anonymous Trump administration officials, the newspaper said US$3.6 bi…
According to the Wall Street Journal, the U.S. government will eliminate funding for a program to reduce health contributions for people over the age of 65.
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Trump administration to end Medicare Part D subsidy after 2026
The Trump administration will end a Medicare Part D subsidy program after 2026. Insurers have gained enough experience to price plans accurately without this support. CMS Administrator Dr. Mehmet Oz stated premiums will increase by less than ten dollars. Many Medicare recipients may even see their premiums decrease next year. This decision impacts millions of older Americans relying on prescription drug coverage.
The Trump administration will end Medicare Part D grants by 2026, which could increase premiums and spending on medicines by 2027.
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