Medicare Subsidy Scrapped By Trump Would Be Saved Under New Bill
Summary
Two Democratic lawmakers introduced a bill to continue a Medicare drug cost subsidy program that President Trump’s administration planned to end after 2026. The bill aims to keep drug premiums affordable for seniors and people with disabilities by extending the subsidy through 2029.Key Facts
- The Affordable Premiums for Seniors Act was introduced by Representatives Kathy Castor and Terri Sewell.
- The bill would extend the Medicare Part D Premium Stabilization Demonstration program through 2029.
- President Trump’s administration decided to end this subsidy program at the end of 2026.
- The subsidy helps keep monthly Medicare Part D prescription drug premiums lower for about 25 million people.
- The program started in 2025 following changes made under the Inflation Reduction Act, including a $2,000 cap on out-of-pocket drug costs.
- Without the program, drug premiums in 2027 are expected to increase more sharply.
- The subsidy saved seniors an average of $312 in 2026.
- Some experts warn that the program subsidizes insurers instead of lowering the actual cost of prescription drugs.
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