Key facts
- The Trump administration is ending a Medicare Part D subsidy program after 2026.
- The program's conclusion in 2027 could lead to higher monthly costs for millions of older adults.
- CMS announced the program's termination, stating it was implemented in 2025.
- CMS Administrator Dr. Mehmet Oz defended the decision, citing cost savings and minimal impact on beneficiaries.
- Democrats criticized the move, arguing it will increase prescription drug costs for seniors.
The Trump administration announced it will end a temporary Medicare Part D premium stabilization program after the 2026 contract year, returning standalone prescription drug plans to traditional market conditions beginning in 2027. The Centers for Medicare & Medicaid Services (CMS) stated the voluntary program, introduced in 2025, was designed to reduce premium volatility as insurers adapted to changes from the Inflation Reduction Act. CMS Administrator Dr. Mehmet Oz defended the decision, arguing it would save billions in taxpayer dollars and that most beneficiaries would see monthly premium increases of less than $10. However, critics like Senate Minority Leader Chuck Schumer have called the move "heartless, cruel, and completely by choice," asserting it will increase prescription drug costs for millions of seniors.