Trump administration to end Medicare Part D subsidy after 2026
The Trump administration plans to let a subsidy program for Medicare Part D prescription drug plans expire after 2026. The subsidy, worth about $3.6 billion this year, has helped keep premiums lower for millions of seniors. Officials said the aid is no longer needed because other cost‑containment measures remain in place, and that ending it could allow insurers to set higher prices.
About a quarter of Part D beneficiaries may see premiums stay steady or decline, while roughly 30 % could face modest increases of less than $10 per month. The move affects an estimated 25 million people enrolled in standalone Medicare drug plans.
Entities: Centers for Medicare & Medicaid Services (CMS) · Medicare Part D · Trump administration · U.S. Department of Health and Human Services