Dr. Oz says many seniors will see lower premiums next year — but only about a quarter are projected
The Trump administration is ending a program that had reduced Medicare Part D prescription drug plan premiums since its launch under the Biden administration in 2024. The initiative provided $9.8 billion in subsidies to health insurers over two years, helping stabilize premium increases for seniors. Dr. Mehmet Oz, head of CMS, claimed 'many' beneficiaries would see lower costs next year but a Trump official told the Wall Street Journal that only about one-quarter are expected to experience flat or reduced premiums. The GAO previously estimated that without this program, 30% of enrollees could have faced average monthly premium hikes between $40 and $100. Another 7% might see increases exceeding $100 per month. Experts like Juliette Cubanski from the Kaiser Family Foundation noted the subsidies had successfully stabilized premiums but warned that without them, some beneficiaries may face larger increases in coming years. The decision aligns with broader Trump administration efforts to reduce federal support for health insurance costs, including allowing ACA subsidies to expire last year.
Topics: health insurance subsidies Medicare premium changes Trump administration policy