The Trump administration is ending a Medicare drug subsidy program. Here's how it could affect costs
The Trump administration announced it will end a temporary Medicare Part D subsidy program that was introduced by the Biden administration in 2024. The change is expected to increase premiums for most beneficiaries by less than $10 per month, though the program cost $3.6 billion in 2026. The decision comes ahead of the 2027 enrollment period and has drawn criticism from Democrats as an increase in drug costs for seniors.
- ▪The Centers for Medicare & Medicaid Services will discontinue the subsidy program that lowered Medicare Part D premiums for about 25 million beneficiaries.
- ▪CMS estimates the program cost $3.6 billion in 2026, and officials say most seniors will see a premium increase of under $10 per month.
- ▪Democratic leaders, including Senate Minority Leader Chuck Schumer, condemned the move as a rise in prescription drug costs for seniors.
- ▪The out‑of‑pocket annual cap for Medicare drug coverage remains at $2,100 for 2026 and is projected to rise to $2,400 in 2027.
2 outlets in our directory ran this story. All of the coverage we found sits in one bucket: right. That one-sidedness is itself worth noticing.
- ▪ What is Medicaid Part D, the subsidy program the Trump administration plans to end? — Washington Examiner
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| Original publisher | The Washington Times |
| Canonical URL | https://www.washingtontimes.com/news/2026/jul/30/heres-trump-administrations-ending-medicare-drug-subsidy-program/ |
| Publication time | Thu, 30 Jul 2026 17:15:51 -0400 |
| Retrieval time | 2026-07-30T22:15:53.975Z |
| Last seen | 2026-07-30T22:15:53.975Z |
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| Cluster | PZblDzJrMQXL · 2 stories |
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Opening excerpt (first ~120 words) tap to expand
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. The Centers for Medicare & Medicaid Services this week announced it would wrap up the program, which was initially implemented by the Biden administration in 2024 to lower patients’ Medicare Part D prescription drug costs in response to effects of the 2022 Inflation Reduction Act. While federal officials insist the financial impact on Medicare beneficiaries will be minimal, the decision opens the Republican-led administration to potential political consequences in a high-stakes midterm election year.
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