Trump administration ends Medicare drug subsidy, setting stage for steep price hikes for millions
Millions of older adults on Medicare prescription drug coverage could face steeper monthly costs in 2027, as the Trump administration ends a temporary subsidy program that has helped keep costs lower since 2019.
Millions of older adults on Medicare prescription drug coverage could face steeper monthly costs in 2027, after the Trump administration ends a temporary subsidy program that has helped reduce the cost of medications for nearly two decades. The subsidy program, which began in 2003, was set to expire at the end of 2026. Without the subsidy, many Medicare beneficiaries would likely see their monthly premiums increase by as much as $30. The decision is expected to have a significant impact on low-income seniors and those with chronic health conditions reliant on prescription medication.
