President Ending Medicare Part D Drug Plan For All Seniors
Millions of Americans with Medicare prescription drug coverage could see big changes beginning in 2027.
The Trump administration announced on Tuesday it will end the Medicare Part D premium subsidy program.
The Centers for Medicare & Medicaid Services (CMS) says the subsidy program, which was designed to help stabilize Medicare Part D premiums for senior citizens, will expire at the end of 2026.
Administration officials argue the program primarily benefited insurance companies rather than Medicare recipients.
Medicare Part D provides optional prescription drug coverage through private insurance companies.
It can be purchased as a stand-alone plan alongside Original Medicare or included in many Medicare Advantage plans.
Under the Biden administration, Medicare Part D underwent significant changes, including a new $2,000 annual cap on out-of-pocket prescription drug costs and authority for Medicare to negotiate prices on certain high-cost medications.
Those provisions remain separate from the premium subsidy program announced this week.
CMS expects to release updated 2027 plan pricing in mid-to-late September, giving beneficiaries time to compare coverage options during the annual Medicare Open Enrollment period.
For 2027, the base beneficiary premium is projected to be $41.33 per month, while the national average monthly bid amount will be $296.05, a figure used to calculate federal subsidy payments to insurance providers.
According to Reuters, roughly 25 million Americans are enrolled in stand-alone Medicare Part D plans.