Trump to End Medicare Drug Subsidy on Part D

M.A. Dworkin

USVI - In a move that could bring higher Medicare prescription drug costs to many older USVI residents and millions around the U.S., the Trump Administration announced it is concluding a temporary subsidy program implemented by the Biden Administration in 2024 to lower patients’ Medicare Part D prescription drug costs.

The Centers for Medicare & Medicaid Services (CMS) said the temporary program would wrap up by the end of 2026. While federal officials insist the financial impact on Medicare beneficiaries will be minimal, the roughly 25 million Americans with Medicare Part D plans will find out about their new 2027 rates in the fall of 2026.

“The Trump Administration is actively raising prescription drug costs for 25 million seniors,” Senate Majority Leader Chuck Schumer said. “Heartless, cruel, and completely by choice.”

CMS Administrator Dr. Mehmet Oz (aka Dr. Oz) said: “Ending the subsidy program would prevent billions of taxpayer dollars from being funneled to insurance companies. It cost the agency an estimated $3.6 billion in 2026. Most Medicare beneficiaries will see less than a $10-per month increase, and some will even see lower premiums than before.”

Dr. Oz went on to explain: “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 (Most-Favored-Nation Prescription Drug Pricing) deals to our policy giving seniors access to GLP-1s for $50 a month.”

Part D beneficiaries paid an average of $36 a month this year for their prescription drug premiums with the subsidy in place. The subsidy offset the average premium by $16 in 2026.

AARP, which serves 38 million adults 50 and older nationwide, had supported the temporary subsidy.

“What’s going to matter most for consumers is how much more or less they have to pay at the end of the month, and how much they have left after the bills are paid,” stated an expert in the field.

VI SHIP, administered locally through the Lieutenant Governor’s Office and funded by CMS, provides free counseling and information to Medicare beneficiaries, family members and caregivers. They can assist with providing counseling on Medicare prescription drug coverage, Medigap insurance, and questions regarding billings and claims.