Politics
Trump Administration To End Medicare Part D Subsidy Program Next Year
The Trump administration announced on Tuesday, July 28, that it plans to end a health insurance subsidy program that lowers the cost of monthly premiums for drug coverage for people on Medicare.
First reported by The Wall Street Journal, the change could affect millions of Americans aged 65 or older. The change would go into effect in 2027 and could potentially increase Medicare drug premiums.
The program was initially set up during the Biden administration just before the 2024 presidential election to offset changes that would have raised Medicare drug premiums the following year, according to The New York Times.
About 25 million Americans have Medicare Part D prescription drug plans, according to the Times. Those enrolled in the program currently pay an average monthly premium of $36, according to KFF, a nonprofit health research group, per the outlet. Another 31 million beneficiaries receive their prescription drug coverage through Medicare Advantage, the outlet added.
Centers for Medicare & Medicaid Services Administrator Dr. Mehmet Oz took to X on Tuesday to discuss the current program and the reasoning behind ending it.
“The Biden admin gave BILLIONS of taxpayer money DIRECTLY to Big Insurance Companies. This is unacceptable,” Dr. Oz wrote.
“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,” his post on X continued.
“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.”
Those enrolled in the program currently will receive new monthly costs this fall, according to Yahoo! News.
Though Dr. Oz claimed some beneficiaries may even see lower insurance premiums as a result of the change, some Democrats spoke out against the decision on Tuesday.
Kendall Witmer, a spokeswoman for the Democratic National Committee, said in a statement that Mr. Trump and Republicans “are doing everything they can to make health care unaffordable for Americans, especially for seniors.”
