NEW YORK — Millions of older adults on Medicare prescription drug coverage may face higher monthly costs in 2027 after the Trump administration decided to end a temporary subsidy program that had helped reduce premiums for the past two years.
The Centers for Medicare & Medicaid Services (CMS) announced this week that it would wrap up the program, which was initially implemented by the Biden administration in 2024 to lower Medicare Part D prescription drug costs following the 2022 Inflation Reduction Act.
Federal officials maintain that the financial impact on Medicare beneficiaries will be minimal. However, the move could have political repercussions during a critical midterm election year, as voters have identified the cost of living as a top concern. Many older adults, who typically vote in high numbers, are on fixed incomes where every dollar matters.
Approximately 25 million Americans with Medicare Part D plans will learn their 2027 rates in the fall, coinciding with the November elections.
Democrats criticized CMS's decision, viewing it as part of a broader pattern of federal actions undermining healthcare affordability, including Medicaid cuts and the expiration of Affordable Care Act subsidies for working-age Americans.
Senate Minority Leader Chuck Schumer responded on X, stating, “The Trump administration is actively raising prescription drug costs for 25 million seniors. Heartless, cruel, and completely by choice.”
The federal Medicare Payment Advisory Commission (MedPAC) reported that the subsidies had offset the average premium by $16 in 2026.
AARP Executive Vice President Nancy LeaMond expressed support for the temporary subsidy, noting the organization's commitment to Americans aged 50 and older.
Juliette Cubanski, vice president and director of the Medicare policy program at KFF, said that while price increases may be marginal for some, they could significantly affect others when combined with rising costs in groceries, gas, and housing.
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