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[HEALTH] · United States · 38 sources

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Trump administration ends Medicare Part D premium subsidy

The Trump administration announced that the federal subsidy stabilisation program for Medicare Part D standalone prescription‑drug plans will cease after the 2026 plan year, becoming effective in 2027. The program, created under the Inflation Reduction Act, has provided roughly $3.6 billion in annual subsidies to insurers and cost about $9.8 billion in total for 2025‑2026. Approximately 25 million beneficiaries were enrolled in standalone Part D plans in 2026. An administration official said about a quarter of beneficiaries will see premiums unchanged or lower in 2027, roughly 30 % will face monthly increases of less than $10, and the remaining 45 % will see rises of $11‑20 per month. CMS Administrator Dr. Mehmet Oz said the market is now stable and the subsidies are no longer needed because insurers can price plans without government support. Premiums are expected to rise by less than $10 for most seniors, with some possibly seeing increases up to $20. The change is expected to save the federal government about $3.6 billion a year but could raise out‑of‑pocket costs for millions of older Americans, making it a potential political issue ahead of the 2026 mid‑term elections.

Entities

Centers for Medicare & Medicaid Services · Centers for Medicare & Medicaid Services (CMS) · Donald Trump · Dr. Mehmet Oz · Kaiser Family Foundation (KFF) · Medicare Part D · Medicare Part D · Medicare Part D · Mehmet Oz · Trump administration · U.S. Department of Health and Human Services · United States

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