Key Facts

• Medicare Part D is the government program that helps cover prescription drug costs for older or disabled Americans.
• The subsidy program helps keep monthly premiums for drug plans around $36 per person.
• Ending the subsidy is expected to raise premiums for about half of the people enrolled, possibly by up to $20 a month.
• The change is planned to start in 2027, with new costs announced in the fall of 2026.
• The administration argues the subsidy mainly benefits insurance companies and claims ending it will stabilize the market.
• Officials say most seniors will still have access to low-cost plans and that prescription drug prices will continue to be lowered through other policies.
• The decision comes as Affordable Care Act subsidies have expired and healthcare costs remain a major political issue.
• Medicare and Medicaid Services Administrator Mehmet Oz spoke publicly about the subsidy end and related drug pricing efforts.