Trump Ends a Medicare Subsidy: What You Should Review Before Renewing Your Plan

The Trump administration will eliminate in 2027 the temporary program that helped limit premium increases for Medicare Part D, the prescription drug coverage program.

The decision comes after the Congressional Budget Office (CBO) concluded that the changes approved under the Inflation Reduction Act will cost significantly more than originally projected.

Why it matters: The administration says that most beneficiaries will continue to have access to low-cost plans and that many monthly premiums will increase by less than $10.

However, the change means beneficiaries should compare plans carefully to avoid paying more than necessary for prescription medications.

What is actually changing with Medicare Part D?

The program being eliminated was created to stabilize premiums while the reforms approved in 2022 were being implemented.

According to Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services (CMS), maintaining that subsidy is no longer necessary because the market can now sustain itself without the additional assistance.

The Biden administration created a bailout for insurance companies. We ended it.

The Trump Administration is focused on delivering real results:

Affordable plans: 90% + seniors will be able to access drug plans under $10/mo.
Lower drug prices: approximately 250,000 Medicare… pic.twitter.com/TZvB7QcbWT

— Dr. Oz CMS (@DrOzCMS) July 30, 2026

The announcement coincides with a new CBO report estimating that the Medicare Part D 2027 changes will increase the federal deficit by approximately $700 billion, far exceeding the original projections.

The key point for beneficiaries is that Medicare Part D is not being eliminated. What is ending is the temporary subsidy that helped keep premium increases under control.

What to review before renewing your plan to avoid paying more

If you have Medicare Part D 2027 coverage, experts recommend reviewing your plan during the Open Enrollment Period rather than automatically renewing your current policy.

Before choosing a plan, make sure to verify:

Whether your monthly premium will increase.

Whether your prescription medications are still covered.

How much you will pay in deductibles and copays.

Whether your preferred pharmacy remains in the plan’s network.

Whether another plan offers better overall costs based on your prescription needs.

Comparing these details every year can help lower your expenses, especially if you rely on long-term prescription medications.

Not everyone will be affected the same way

The impact of ending the subsidy will vary depending on each beneficiary’s circumstances.

Those who may notice greater changes include people who:

Take expensive prescription medications.

Use multiple medications at the same time.

Live in states with fewer plan options.

Do not compare available plans during Open Enrollment.

Others may experience only minor changes or even maintain similar costs, depending on the plan they choose.

How to save money even if Medicare premiums increase

In addition to comparing plans, there are several ways to reduce prescription drug expenses.

Experts recommend:

Asking your doctor whether generic alternatives are available.

Checking whether another in-network pharmacy offers lower prices.

Using Medicare’s official plan comparison tool before renewing your coverage.

Reviewing each year whether a different plan better matches your prescription needs.

These steps can result in meaningful long-term savings.

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Medicare Part D 2027 Changes: What You Should Know – PHOTO: Shutterstock

Which Medicare benefits remain in place?

The Trump administration’s decision does not eliminate Medicare Part D prescription drug coverage or the other protections that remain in effect under current law.

The full impact will become clear once insurance companies publish their 2027 Medicare Part D premiums and plan details.

For that reason, carefully reviewing the available Medicare Part D 2027 options before renewing your coverage will be the best way to avoid unexpected premium increases and keep prescription drug costs under control.