July 28 (Reuters) – The Trump administration plans to end a subsidy program that helped hold premiums for Medicare drug plans, the Wall Street Journal reported on Tuesday, citing government officials.
The program, expected to provide insurers with roughly $3.6 billion in subsidies this year to cushion Medicare Part D premium increases, will not be renewed beyond 2026, the report said.
Medicare Part D, which provides prescription drug coverage to millions of Medicare beneficiaries through private insurance plans, is a key component of the federal health program for seniors.
Rising healthcare costs remain a growing concern in the U.S., particularly for older Americans living on fixed incomes. Nearly 25 million people were enrolled in standalone Medicare Part D prescription drug plans in 2026, according to data from health policy research group KFF.
The Journal quoted an administration official who said the additional subsidies gave insurers an incentive to raise premiums because the government would absorb much of the added cost. The official also said the subsidies were no longer necessary, saying that other measures aimed at keeping Medicare Part D costs in check remain in place.
The Department of Health and Human Services, which oversees the Centers for Medicare & Medicaid Services (CMS), did not immediately respond to a Reuters request for comment.
The administration official told the Journal that about a quarter of Medicare Part D beneficiaries would see their premiums remain unchanged or decline next year, while roughly 30% would face monthly increases of less than $10.
(Reporting by Padmanabhan Ananthan in Bengaluru; Editing by Sahal Muhammed)
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