Trump administration ending Biden-era temporary Medicare drug subsidy

The Centers for Medicare & Medicaid Services announced this week that it would finish a temporary program implemented during the Biden administration in 2024, which provided taxpayer-funded subsidies to lower patients' Medicare Part D prescription drug costs. 

CMS Administrator Dr. Mehmet Oz said on Tuesday that ending the $3.6 billion program would prevent billions of taxpayer dollars from going to insurance companies. Most Medicare beneficiaries, he said, would see less than an increase of less than $10 per month, and some would see lower premiums, the Associated Press reported. 

Democrats were critical of the decision. Senate Minority Leader Chuck Schumer called it "heartless, cruel and completely by choice." 

Pard D beneficiaries paid an average of $36 per month for their prescription drug benefits with the subsidy program active, according to the healthcare research nonprofit KFF. The subsidies reduced the average premium by $16 in 2026, according to federal data.