The Trump administration is pulling the plug on a program that helped keep prescription drug premiums in check for millions of seniors, setting the stage for higher costs just as older Americans continue grappling with inflation and rising healthcare expenses.
On Tuesday, the administration announced it will end a Biden-era subsidy program that has spent the last two years helping health insurers keep Medicare Part D drug premiums from spiking.
The move means millions of Medicare beneficiaries could soon be paying more out of pocket for their prescription drug coverage next year.
The timing could hardly be worse for Republicans.
As voters head into the 2026 midterm elections, many seniors shopping for their Medicare drug plans this fall could be hit with higher monthly premiums—a financial shock that could quickly become a political headache.
For 2025 and 2026, the federal government provided insurers with billions of dollars in temporary subsidies to prevent steep premium increases. Without that assistance, experts warned that many Medicare recipients could have faced hundreds of dollars a year in additional costs for prescription drug coverage.
Now, those subsidies are going away.
Dr. Mehmet Oz, who now heads the Centers for Medicare & Medicaid Services under President Donald Trump, defended the decision in a social media post, arguing that insurance companies no longer need the extra federal support.
“Premiums will go up by less than $10 for most Medicare recipients, with many even seeing LOWER premiums,” Oz wrote, adding that beneficiaries will still have access to affordable plan options.
But for many seniors living on fixed incomes, even modest premium increases can add up—especially when combined with rising costs for housing, groceries, and other essentials.
The administration has not disputed that ending the subsidy program will result in higher premiums for many Medicare beneficiaries. Instead, officials argue the increases will be relatively small and that competition among insurers will continue to provide low-cost options.
Still, the decision marks another major shift away from a Biden-era policy designed to shield older Americans from rising prescription drug costs.
Whether the premium increases turn out to be modest or more significant, millions of seniors will soon find out when they begin shopping for next year’s Medicare drug plans—just weeks before they head to the polls.
