Trump admin is ending a Medicare drug subsidy program. Heres how it could affect costs. [HT35hX3PerP]
The Trump administration is ending a Medicare drug subsidy program. Here’s how it could affect costs From the PEP Radio Newsroom, we have this news from Washington: Millions of older adults on Medicare prescription drug coverage could face steeper monthly costs in 2027, after the Trump administration concludes a temporary subsidy program that has helped offset premiums for the past two years. The Centers for Medicare & Medicaid Services this week announced it would wrap up the program, which was initially implemented by the Biden administration in 2024 to lower patients’ Medicare Part D prescription drug costs in response to effects of the 2022 Inflation Reduction Act. While federal officials insist the financial impact on Medicare beneficiaries will be minimal, the decision opens the Republican-led administration to potential political consequences in a high-stakes midterm election year. Voters have identified cost of living as a top concern, and many older adults, who tend to vote in high numbers, are on fixed incomes where every dollar counts. The roughly 25 million Americans with Medicare Part D plans will find out about their 2027 rates in the fall, when they are casting ballots in November’s elections. CMS Administrator, Dr. Mehmet Oz said most Medicare beneficiaries would see less than a $10-per-month increase, and some would even see lower premiums than beforehand. “Every Medicare beneficiary still has access to low-cost plans, and we will continue to lower prescription drug prices for every American patient, from more MFN deals to our policy giving seniors access to GLP-1s for $50 a month,” he wrote on social media. Part D beneficiaries paid an average of $36 a month this year for their premiums with the subsidies in place, according to the healthcare research nonprofit KFF. The subsidies offset the average premium by $16 in 2026, according to the federal Medicare Payment Advisory Commission (MedPAC). It’s not yet known how many Americans the change will effect, or how much more they’ll pay. Older Americans can shop for plans each year, and prices vary widely between them. CMS has said it will release information about next year’s premiums in September. That’s what we know for now. From the PEP Radio Newsroom, I’m David Moore. Posted: July 30, 2026, at 3:30 PM EDT AP link: