Medicare Part D subsidy to end in 2027 under Trump administration

The U.S. Centers for Medicare & Medicaid Services (CMS) announced that the temporary subsidy program for Medicare Part D prescription‑drug coverage, launched in 2024, will be discontinued in 2027. The subsidy, which has helped offset premiums for roughly 25 million Medicare beneficiaries, cost an estimated $3.6 billion in 2026. CMS Administrator Dr. Mehmet Ozon said ending the program will prevent billions of taxpayer dollars from flowing to insurers and that most seniors will see less than a $10‑per‑month increase, with some possibly receiving lower premiums.

Democratic leaders, including Senate Minority Leader Chuck Schumer, criticized the move as a politically motivated effort to raise drug costs for seniors ahead of the 2024 midterm elections. The decision does not affect the out‑of‑pocket spending cap for older adults.