New York Gov. Kathy Hochul is slamming the Trump administration’s new Medicare cuts.
Last week, the Centers for Medicare and Medicaid Services (CMS) announced it would end a temporary subsidy program that has helped offset premiums for the past two years.
On Wednesday, Hochul called the ending of the plan “a new assault on seniors.”
The Centers for Medicare and Medicaid Services Part D Premium Stabilization Demonstration Program will now end effective Dec. 31, 2026.
The program provided federal subsidies to private insurers to cap monthly premium spikes for prescription drug coverage.
The program was implemented in 2024 by the Biden administration to lower patients’ Medicare Part D prescription drug costs in response to the effects of the 2022 Inflation Reduction Act.
Hochul says the program’s end is anticipated to impact 1.3 million seniors across New York.
“That there’s now a new assault on seniors,” Hochul said during an event speaking to seniors. “An assault on seniors by the Trump administration that is now taking away a subsidy for prescription drugs. So, your monthly premiums will go up. Thank you to the Republicans in Washington.”
New York Democrats in Washington are also criticizing the program’s end.
Sen. Kirsten Gillibrand called this move “a disaster for seniors.”
“I’ve heard from countless New York Seniors about how devastating this decision could be,” she said during a press conference Wednesday in Washington.
In the New York state Legislature, chairs of both the Senate and Assembly health committees say seniors are already having a difficult time in the current economy.
“I am appalled by the Trump administration’s decision to end Medicare Part D subsidies by next year and jeopardize the well-being of 1.3 million seniors in New York State who rely on their prescription drugs,” said state Sen. Gustavo Rivera. “Older New Yorkers are already struggling to pay for basic expenses on a fixed income. In our state, we have worked diligently to lower prescription drug costs like capping out of pocket costs for insulin and Epi-Pen and expanding prescription access programs for the elderly. I look forward to working with Governor Hochul and my colleagues to find more ways to make healthcare affordable, while we continue to fight the cruel attacks on working people from the Trump administration.”
Assemblymember Amy Paulin says, “the President’s action will force many seniors to pay more for needed prescription drugs. At a time when affordability is the most important issue of the day, this action runs counter to actually helping seniors in New York as well as the nation.”
In a statement to Spectrum News 1, Nancy LeaMond, AARP executive vice president and chief advocacy and engagement officer, said: “AARP supported the Part D pilot program (Premium Stabilization Demonstration). We simply want Medicare beneficiaries to have access to the prescription drug coverage that works best for them. While it’s too early to know the full impact of this change, it would be unfortunate if this decision made Part D coverage less affordable, just as we’re beginning to see billions in savings from Medicare drug price negotiation.”
To help counter premium spikes, Hochul has expanded the Medicare Savings Program, which her office says increased enrollment by 20% to serve more than a million people.
In response to the arguments against the program’s ending a CMS spokesperson tells Spectrum News 1: “The Part D market is stabilizing following three years of disruption due to the Inflation Reduction Act redesign in plan years 2024, 2025, and 2026—this demonstration was always intended to be a temporary measure to address market instability. We understand that outside organizations without plan bid information have voiced concerns, however our data shows that plan bids have stabilized; among the roughly quarter of Medicare beneficiaries enrolled in plans the previous demo impacted, over 85% of beneficiaries will have access to a Part D plan that is either lower cost or less than a $10 increase next year. Additionally, every beneficiary among that quarter of beneficiaries will have access to at least three prescription drug plan options with total monthly premiums of $50 or less. For most Medicare beneficiaries, premiums will go down, stay the same, or increase by less than $10. CMS remains focused on enacting policies to lower the cost of drugs and drug coverage, not directing billions of dollars in subsidies to insurance companies.”
While the decision to end the Medicare Part D subsidy program was an executive one, political analysts say the overall cuts to federal healthcare could be felt at the ballot box this November, with Republicans who voted for them potentially suffering political consequences since seniors are a major voting bloc across the country.