Trump to End Medicare Part D Subsidies After Vowing to “Protect” Program in 2024

On Tuesday, the Trump administration announced its plans to end a subsidy program for Medicare Part D, which has helped lower prescription drug costs for tens of millions of enrollees in the program for the past two years.

The Biden-era program provided subsidies to insurance companies, which in turn lowered the cost of drugs for seniors in Medicare. If repealed, many enrollees in the program could see their prescription costs increase by hundreds of dollars annually.

The announcement comes at a time when other costs, including for everyday consumer goods, have been increasing, too. The changes to Medicare Part D will go into effect at the end of this year.

According to the Centers for Medicare & Medicaid Services, which made the announcement, a recent review of prescription drug bids from insurers purportedly shows that they will more accurately price their plans without the need for the subsidies. There don’t appear to be any more assurances, other than that determination, that costs won’t go back up.

“We are stabilizing the market so this bailout is no ​longer needed,” agency director Mehmet Oz said in a statement.

Other experts, however, expressed a more worrisome tone about the future of the program.

“It’s certainly possible that without this enhanced financial support in place for 2027, some Medicare beneficiaries enrolled in [Part D plans] could face relatively steep premium increases for drug coverage next year,” said director of the KFF Program on Medicare Policy Juliette Cubanski, speaking to The Washington Post about the changes.

The decision contradicts promises and commitments to protecting Medicare that President Donald Trump and the Republican Party in general made during the 2024 elections. During his presidential campaign, for example, Trump said he would “always protect” Medicare. The official GOP platform also promised to “protect Medicare,” and “vow[ed] to strengthen Medicare for future generations.” It also stated that there would be “no cuts” to the program.

Perhaps recognizing that the move could impact the 2026 midterm elections, Democrats immediately denounced the action.

“Donald Trump and Republicans are doing everything they can to make healthcare unaffordable for Americans, especially for seniors,” DNC Rapid Response Director Kendall Witmer said in a statement. She added:

Trump and Republicans’ massive healthcare cuts have pushed working families to the brink as they grapple with skyrocketing insurance premiums, even bigger medical bills, and rising prescription drug costs. Americans are taking on record amounts of medical debt just to make ends meet — all while Trump and his family get even richer and his wealthy donors rake in tax cuts.

Other Democrats have urged the country to go further in lowering health care costs, not just for seniors, but for every American. In an op-ed for Truthout co-written last month by Rep. Ilhan Omar (D-Minnesota) and Lisa Gilbert, co-president of Public Citizen, the pair called for repairing the broken U.S. health system by expanding Medicare eligibility to every person in the country.

“There’s no denying that it is time for change — it is way past time for Medicare for All,” they wrote, adding that:

Given the resources of our country, we can no longer justify the status quo. The U.S. spends almost twice per person on health care compared to other wealthy nations and our outcomes are often worse. Millions of Americans remain uninsured or underinsured. This is utterly outrageous, especially in the wealthiest country in the world.

“We are sick and tired of our health care system putting profits before people,” Omar and Gilbert said. “We need to create a future in which every single person in the U.S. can get the care they need regardless of their ability to pay.”