The Trump administration plans to end subsidies that help lower Medicare prescription drug premiums, a move that could raise costs for millions of older Americans next year. The decision affects the Medicare Part D program, which provides drug coverage to over 50 million beneficiaries.

Currently, federal subsidies keep premiums affordable for many enrollees, but eliminating them would shift more costs onto seniors. Health policy experts warn that higher premiums could lead some beneficiaries to drop coverage or skip medications. The change aligns with broader efforts to reduce federal healthcare spending, though Congress may challenge the move.

CMS has not yet released final details on implementation timing. Advocacy groups for seniors are mobilizing opposition, arguing the cuts disproportionately harm low-income and chronically ill patients. The administration says the subsidies distort market competition and that ending them will encourage more efficient drug pricing. Open enrollment for 2026 plans begins in October, giving beneficiaries limited time to assess new costs.