Trump administration to end $3.6 billion Medicare Part D premium subsidy after 2026

CMS said the Biden-era support will expire at year-end, with 2027 Part D pricing details due in September and officials saying most beneficiaries will see premium increases of less than $10.

28d ago

Fact Check

The WSJ article directly confirms the core claim: the Trump administration will end a Medicare Part D premium subsidy after 2026, with the ~$3.6 billion figure and the expectation of higher senior premiums. This is corroborated by authoritative government sources: the CMS fact sheet confirms the Part D Premium Stabilization Demonstration was a temporary program reduced for 2026, and the MedPAC January 2026 status report explicitly states the demonstration is ending after 2026. KFF analysis further confirms the administration's wind-down of the program. The specific $3.6 billion figure comes only from the WSJ, but the substance of the claim (ending the subsidy after 2026, higher premiums for seniors) is well-corroborated across independent authoritative sources.

Summary

The Trump administration said it will let a Biden-era Medicare Part D premium subsidy program expire at the end of 2026, arguing the support benefited insurers more than enrollees and is no longer needed. The temporary aid is expected to provide insurers with about $3.6 billion this year to cushion premium increases. Medicare Part D, the prescription drug benefit offered through private plans, was reworked under former President Biden to add a $2,000 annual cap on out-of-pocket drug spending and allow Medicare to negotiate prices for some high-cost drugs. CMS said it expects to release new monthly pricing details in mid- to late-September. For 2027, the national average monthly bid amount will be $296.05 and the base beneficiary premium will be $41.33. Dr. Mehmet Oz, the current administrator of CMS, said premiums will rise by less than $10 for most Medicare recipients, while some may see lower premiums. Roughly 25 million Americans are enrolled in standalone Part D plans.

Terms & Concepts

Medicare Part D: The Medicare benefit that provides optional prescription drug coverage through private insurance plans.
base beneficiary premium: A standard Medicare Part D premium benchmark used in setting what beneficiaries and the government pay.
national average monthly bid amount: An average plan bid figure that helps determine federal subsidy payments to Medicare drug plans.