# US Medicare Part D subsidy termination and cost shifts > Live situation record from CLSTR: https://clstr.news/situations/us-medicare-part-d-subsidy-termination > Updated: 2026-08-22T15:02:38.000Z. Sources: 17. Developments: 4. In late July 2026, the Centers for Medicare & Medicaid Services (CMS) announced that the temporary premium subsidy for Medicare Part D, introduced in 2024, will be discontinued in 2027. The program, which lowered premiums for approximately 25 million seniors and cost roughly $3.6 billion in 2026, was defended by CMS Administrator Dr. Mehmet Ozon as a measure to curb taxpayer spending. He stated that ending the program would prevent billions of dollars from flowing to insurers and predicted that most beneficiaries would see a premium increase of less than $10 per month. Democratic leaders, including Senate Minority Leader Chuck Schumer, criticized the move, with some characterizing it as a politically motivated effort to raise drug costs for seniors. By mid-August 2026, the administration confirmed it would end the Part D Premium Stabilization Demonstration program one year earlier than originally planned, concluding it after 2026 to save nearly $4 billion. New projections suggest this termination could increase premiums by up to $20 per month for up to 25 million recipients. In response, New York officials, including Governor Kathy Hochul and Senator Kirsten Gillibrand, urged a reversal, warning that 1.3 million seniors in the state could face higher costs. Beyond the subsidy expiration, the 2027 Annual Enrollment Period faces additional pressure from rising medical costs and an aging population. Analysts also warn that the Inflation Reduction Act’s drug price negotiation program might inadvertently lead insurers to implement stricter utilization-management tools, such as prior authorization and formulary exclusions, potentially impacting medication access. ## Claims - Part B premiums are projected to rise over the next decade due to aging populations and rising medical costs. (single source) - The projected 2027 Part B premium is $209.50 per month. (single source) - The projected 2027 Part D deductible is $700. (single source) - The Inflation Reduction Act limits annual Part D out-of-pocket spending to $2,000 in 2025 and $2,100 in 2026. (single source) - The Inflation Reduction Act limits annual monthly premium increases to a maximum of 6%. (single source) - Analysts warn that drug price controls may lead insurers to tighten utilization-management tools like prior authorization and formulary exclusions. (single source) ## Timeline ### 2026-08-22: Medicare faces significant cost and coverage shifts for 2027 Medicare beneficiaries face rising costs and coverage shifts in 2027 due to expiring subsidies, projected premium increases, and potential changes in drug access following price control policies. 5 sources. https://clstr.news/cluster/medicare-faces-significant-cost-and-coverage-shifts-for-2027 ### 2026-08-11: Trump administration implements major Medicaid and Medicare funding changes Federal healthcare changes under the Trump administration include a projected $1 trillion cut to Medicaid and the early termination of Medicare Part D subsidies, impacting millions of beneficiaries. 2 sources. https://clstr.news/cluster/trump-administration-implements-major-medicaid-and-medicare-funding-changes ### 2026-08-05: US Ends Medicare Part D Premium Subsidy, Raising Senior Drug Costs The Trump administration will end the Medicare Part D premium subsidy in 2027, likely raising costs for up to 25 million seniors; New York officials urge reversal. 2 sources. https://clstr.news/cluster/us-ends-medicare-part-d-premium-subsidy-raising-senior-drug-costs ### 2026-07-30: Medicare Part D subsidy to end in 2027 under Trump administration CMS will end the Medicare Part D subsidy in 2027, affecting about 25 million seniors. Most will face under $10‑monthly premium increases; Democrats decry the move ahead of the midterms. 8 sources. https://clstr.news/cluster/medicare-part-d-subsidy-to-end-in-2027-under-trump-administration --- Cite as: US Medicare Part D subsidy termination and cost shifts. CLSTR, https://clstr.news/situations/us-medicare-part-d-subsidy-termination