Team Trump has announced it is ending Medicare drug subsidies that helped to keep costs down for seniors.
The subsidies were expected to last through 2027, but they’re ending a year early. #SoMuchWinning
The Trump administration is ending a key health insurance subsidy program that aimed to keep premiums for seniors’ prescription drug plans in check, claiming that it benefits corporate insurance companies.
Read more: https://t.co/kvW1BcjCFa
— ABC News (@ABC) July 29, 2026
From NPR:
The Trump administration is ending subsidies that helped keep costs down for Medicare drug coverage. The change could mean higher Medicare Part D premiums for millions of beneficiaries in 2027.
Under the Inflation Reduction Act of 2022, Medicare patients’ out-of-pocket drug spending was capped at $2,000 starting in 2025, and it changed the way insurers pay for drugs.
At first, insurers didn’t know how much more they’d be spending — or how high to set premiums. To ease the transition for insurers, the Biden administration created temporary subsidies to stabilize premiums through what’s called a demonstration project.
A report published by the Government Accountability Office in February showed about 23 million were enrolled in Medicare Part D drug plans in 2025.
Dr. Mehmet Oz, who oversees the Centers for Medicare and Medicaid, made the announcement on the social media platform X.
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