Seniors Furious After Trump Ends Medicare Part D

The Trump administration announced Tuesday that it will end a Medicare prescription drug premium subsidy program created under the Biden administration, arguing the program primarily benefited insurance companies rather than seniors enrolled in Medicare.

The subsidy program, which helps reduce premiums for Medicare Part D prescription drug plans, will expire at the end of 2026 and will not continue into 2027.

Medicare Part D provides optional prescription drug coverage through private insurance companies, either as a standalone plan that supplements Original Medicare or as part of a Medicare Advantage plan.

The program was expanded during the Biden administration alongside reforms that capped annual out-of-pocket prescription drug costs at $2,000 and allowed Medicare to negotiate prices for certain high-cost medications.

Millions of seniors and people with disabilities currently enrolled in the subsidy program are expected to learn their updated monthly premiums later this year. The Centers for Medicare and Medicaid Services (CMS) said pricing information for 2027 plans is expected to be released in mid-to-late September.

CMS said the national average monthly bid amount for Medicare Part D plans in 2027 will be $296.05, which helps determine federal subsidy payments to insurers. The standard base beneficiary premium for 2027 will be $41.33.

Roughly 25 million Americans are enrolled in standalone Medicare Part D prescription drug plans.

CMS Administrator Dr. Mehmet Oz defended the decision, saying the administration believes the insurance market has stabilized and no longer requires the subsidy program.

“We are stabilizing the market so this bailout is no longer needed,” Oz wrote on social media. He added that premiums are expected to increase by less than $10 for most Medicare beneficiaries, while some enrollees could see lower monthly premiums.

Oz also said Medicare beneficiaries will continue to have access to lower-cost prescription drug plans as the administration pursues additional efforts to reduce drug prices, including expanding access to certain medications at lower costs for seniors.