Trump Admin Plans Medicare Revision, Subsidies at Risk?

Big changes are coming to Medicare under the Trump administration, and seniors enrolled in the program should be prepared.

According to a recent ABC News report, the subsidy for Medicare’s Part D program is set to end in 2027. This decision follows an earlier expiration of subsidies planned for the end of 2026, despite past administrations’ attempts to secure bridge funding. This means beneficiaries of Part D should review their coverage to be aware of the impact on their coverage.

The decision was conveyed to the media at a White House press briefing by Dr. Mehmet Oz, the administrator for the Centers for Medicare & Medicaid Services. He stated that the Part D subsidy program, used by an estimated 25 million people according to ABC News, was actually benefiting corporate insurance companies. With the subsidy’s end, approximately half of the program’s beneficiaries could face increased prescription costs and premiums, among other potential impacts.

Trump Administration Phases Out Medicare Part D Subsidy

As for specifics on how this change will affect the cost of monthly medication for seniors, the Trump administration has yet to provide details. Administration officials have said that answers may be available by fall 2026. On Twitter, Dr. Oz blamed President Joe Biden for the increase in rates.

In his tweet, Dr. Oz wrote, “The Biden admin gave BILLIONS of taxpayer money DIRECTLY to Big Insurance Companies. This is unacceptable,” he typed. “We are stabilizing the market so this bailout is no longer needed. Premiums will go up by less than $10 for most Medicare recipients, with many even seeing LOWER premiums.”

Dr. Oz reassured that all Medicare beneficiaries will have access to low-cost plans and that the administration will continue to reduce prescription drug costs. He mentioned “most favored nation” deals, where drug companies offer American patients the same rates as in other countries.

What Will the Impact Be?

The US Government Accountability Office’s report on Medicare Part D, released in February, provides some insight. Since the Inflation Reduction Act of 2022, premium stabilization has been challenging to achieve. The report shares results from their study.

“The Centers for Medicare & Medicaid Services (CMS) implemented the voluntary Medicare Part D Premium Stabilization Demonstration (Demonstration) in 2025 to stabilize beneficiary monthly premiums and enrollment in Part D standalone prescription drug plans,” the report revealed. “Nearly all plan sponsors opted to participate. Without the Demonstration, GAO’s analysis of CMS data showed that, if beneficiaries in standalone drug plans in 2024 remained in their plan in 2025, their monthly premium would have nearly doubled, on average.”

“In addition, monthly premiums for 37 percent of these beneficiaries would have increased by more than $40. If these premium increases had taken effect, CMS officials expected widespread changes in enrollment for beneficiaries in standalone drug plans, which could disrupt beneficiaries’ access to their medications,” the abstract continues.

Changes to Medicare Part D will start in 2027, affecting millions of seniors. The wait is on until fall to discover how these changes will impact their pockets.