Donald Trump's administration plans to end drug subsidies at the end of the year for beneficiaries of Medicare Part D, which helps older adults pay for their prescription drugs. This could result in a significant increase in monthly costs for this segment of the population, increasing the base premium from $38.99 to $41.33 in 2027, representing an increase of approximately 6%.

Indeed, the Centers for Medicare and Medicaid Services (CMS) has indicated that the early elimination of subsidies could lead to increases in premiums for prescription drug coverage. Although the law sets a limit on annual premium increases through 2029, the current changes could cause concern among beneficiaries.

Medicare Part D is used by tens of millions of elderly or disabled beneficiaries.

Political debate and reactions

The decision to end these subsidies sparks a new debate about the cost of health care just before the midterm elections. Voters are increasingly concerned about the cost of living, and this measure may affect their perception of Republican policies.

El Financiero recalls that in 2025, Republicans in Congress rejected attempts to extend subsidies that had considerably made Affordable Care Act health plans cheaper for millions of people, also benefiting private insurers.

Despite alarms about costs, an administration official says most older Americans will not see premium increases.

“We are stabilizing the market, so this bailout is no longer necessary,” wrote Mehmet, administrator of the Centers for Medicare and Medicaid Services Oz in a post on

“All Medicare beneficiaries continue to have access to low-cost plans, and we will continue to reduce prescription drug prices for all American patients, from more most favored nation agreements to our policy that gives seniors access to GLP-1 for $50 a month,” he added in the statement, referring to “most favored nation” agreements, under which pharmaceutical companies charge American patients the same rate they charge in other countries.

However, criticism of insurance companies persists, and Trump's proposed subsidy plans have been questioned about their viability.

Alternatives if they eliminate Medicare subsidies

If drug subsidies are eliminated, Medicare beneficiaries still have several options: switch to a Medicare Advantage plan with drug coverage, move to a stand-alone Part D drug plan, or maintain other creditable coverage they already have, such as from an employer, union, TRICARE, or VA. Medicare also offers Extra Help and other support programs for those with limited income or resources.

Main options

What should be checked? Before switching, it's a good idea to compare three things: whether the plan covers the drugs you actually use, how much your monthly premium will cost, and how much you'll pay in co-pays or deductibles. It also matters if your doctors and pharmacies are in-network, because that can change your total spending a lot.

Risks when waiting. If a person delays drug coverage without having other creditable coverage, they could face a Part D late enrollment penalty later. Therefore, Medicare recommends reviewing the situation as soon as possible, especially if current coverage is lost or the plan is no longer sustainable.

Support available. Those with low incomes may automatically qualify for Extra Help if they also receive Medicaid, SSI, or are in certain Medicare Savings Programs. Additionally, programs like LI NET can provide temporary coverage at the pharmacy while enrollment in an appropriate plan is arranged.

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