Trump Will End Subsidies for Medicare Drug Premiums

The Trump administration announced on Tuesday that it intended to end a Biden-era program that for the past two years has helped tamp down the cost of monthly premiums for drug coverage for people on Medicare.

The decision means that millions of Americans 65 and older could face higher Medicare drug premiums next year, when the cost of living is already a major concern. That could be politically damaging for Republicans in the midterm elections. In the weeks leading up to November, Medicare beneficiaries could experience sticker shock while shopping for next year’s drug plan.

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. Without the subsidies, millions of people could have had to pay hundreds of dollars more a year for their drug plans.

Dr. Mehmet Oz, the administrator of the Centers for Medicare Medicaid Services, said in a post on social media on Tuesday that the subsidies had been ended because the insurers no longer needed them. He said every Medicare beneficiary would still have options for low-cost plans.

Article source: https://www.nytimes.com/2026/07/28/business/medicare-drug-subsidies-part-d.html