US Ends Medicare Part D Premium Subsidy, Raising Senior Drug Costs

The Trump administration announced that it will end the Part D Premium Stabilization Demonstration, a two‑year subsidy program created under the Inflation Reduction Act to lower prescription‑drug premiums for seniors with stand‑alone Medicare Part D plans. The program delivered billions of dollars to Part D plans and reduced average premiums by $26 in 2025 and $16 in 2026. The termination, slated for 2027, is projected to increase premiums by up to $20 per month, affecting up to 25 million Medicare recipients nationwide.

New York officials, including Governor Kathy Hochul and U.S. Senator Kirsten Gillibrand, urged the administration to reverse the decision, warning that as many as 1.3 million seniors in the state could face higher costs. They highlighted state measures such as an expanded Medicare Savings Program and initiatives on insulin copays and cancer screening. Seniors are advised to budget for the increase, use the September open‑enrollment window to compare plans or consider Medicare Advantage, and discuss generic or lower‑cost drug options with their providers.