The Trump administration plans to end a subsidy program that helped keep premiums low for Medicare drug plans, a move that could leave many seniors facing higher rates for their prescription coverage next year, Anna Wilde Mathews reported on July 28 for The Wall Street Journal.

“The move will eliminate a program that is giving insurance companies an estimated $3.6 billion in subsidies this year to blunt increases in premiums for the Medicare prescription plans, known as Part D,” Wilde Mathews 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," said Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services (CMS), in a post on X.

“The decision comes as the Trump administration pursues broader changes to government health programs, including a ​proposal to overhaul Medicare ​physician payments and ⁠increase oversight of federal healthcare spending,” Padmanabhan Ananthan wrote for Reuters.

“The agency said the national base beneficiary premium for Medicare Part D will be $41.33 next year,” Ananthan reported. “Annual increases in that premium remain capped ⁠at 6 percent through 2029 under provisions of the ​Inflation Reduction Act.”

CMS announced it will release the 2027 MA and Part D landscape in mid-to-late September.

Leading Medicare Part D insurers include UnitedHealth Group, Humana, and Aetna, a CVS Health company.