{"id":852005,"date":"2026-09-18T10:30:23","date_gmt":"2026-09-18T10:30:23","guid":{"rendered":"https:\/\/www.newsbeep.com\/us\/852005\/"},"modified":"2026-09-18T10:30:23","modified_gmt":"2026-09-18T10:30:23","slug":"medicare-subsidy-scrapped-by-trump-would-be-saved-under-new-bill","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us\/852005\/","title":{"rendered":"Medicare Subsidy Scrapped By Trump Would Be Saved Under New Bill"},"content":{"rendered":"

Two Democratic lawmakers introduced a bill to reverse the Trump administration’s decision to end a Medicare prescription drug subsidy program<\/a> and extend it through 2029.<\/p>\n

Representatives Kathy Castor of Florida and Terri Sewell of Alabama unveiled the Affordable Premiums for Seniors Act this week. This legislation would continue the Medicare Part D Premium Stabilization Demonstration beyond 2026. <\/p>\n

Just weeks earlier, the Trump administration announced that the Centers for Medicare & Medicaid Services (CMS) <\/a>would end the program at the close of next year. <\/a><\/p>\n

Read More on Politics<\/p>\n

\u201cEvery trip to the grocery store and every monthly bill is increasingly painful for my older neighbors. The added strain of higher prescription drug costs is the last thing they need, so I will fight to reverse a recent HHS scheme to increase Medicare prescription drug costs for seniors and people with disabilities,\u201d Castor said in a statement. <\/p>\n

\u201cThe Affordable Premiums for Seniors Act will reverse the HHS scheme, keep premiums down and provide greater certainty on health care costs<\/a>. Seniors worked hard for their earned Medicare benefits, and I am fighting to keep those benefits affordable and dependable.\u201d <\/p>\n

Why It Matters<\/p>\n

Nearly 25 million people were enrolled in standalone Medicare Part D prescription drug plans in 2026, according to KFF. Without the stabilization program, some beneficiaries will face higher premium increases in 2027 than they have experienced in several years. <\/a><\/p>\n

For retirees living on fixed incomes, many are already grappling with rising housing and health-care costs. <\/p>\n

By keeping the subsidy, lawmakers are arguing drug coverage could stay more affordable, but the Trump administration has argued the extra subsidies are no longer necessary.<\/p>\n

\"AdministratorWhat to Know<\/p>\n

The Affordable Premiums for Seniors Act would prevent CMS from ending the Medicare Part D Premium Stabilization Demonstration and instead continue the program through 2029. <\/a><\/p>\n

CMS created the subsidy in 2025 after changes made under the Inflation Reduction Act redesigned Medicare’s prescription drug benefit. Those reforms included a $2,000 annual cap on out-of-pocket prescription drug costs, while shifting a greater share of costs onto Part D plans. <\/p>\n

\u201cThis is about what they pay each month for standalone Part D drug coverage. The stabilization program absorbed some of the shock while insurers adjusted to major changes in Medicare Part D. Ending it removes that cushion,\u201d Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek.<\/p>\n

\u201cThere\u2019s a reasonable argument on both sides. Supporters of extending it can point to evidence that the program prevented much sharper premium increases and gave seniors more predictable costs. For someone living on a fixed income, even another $10 or $20 a month matters.\u201d<\/p>\n

What the Bill Would Do<\/p>\n

If enacted, the legislation would:<\/p>\n

Extend the Medicare Part D Premium Stabilization Demonstration through 2029. <\/a>Preserve federal premium assistance for standalone Medicare Part D plans. <\/a>Aim to keep monthly prescription drug premiums lower for beneficiaries. <\/a>Reverse the Trump administration’s decision to terminate the program after 2026. <\/a><\/p>\n

\u201cLowering premiums for people at the lower end of the income spectrum, particularly those who rely heavily on prescription drugs, is a definite benefit for beneficiaries living on fixed incomes,\u201d Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek.<\/p>\n

\u201cHowever, the counterargument is that we are subsidizing insurers to keep premiums lower rather than addressing the underlying cost of prescription drugs and healthcare.\u201d<\/p>\n

According to the Medicare Payment Advisory Commission (MedPAC), the subsidy saved seniors an average of $312 in 2026. <\/a><\/p>\n

\u201cFor seniors living on fixed incomes, every dollar matters. At a time when seniors are already struggling to keep up with the rising cost of groceries, housing, health care, and everyday necessities, the Trump Administration should be doing everything it can to lower costs, not ending a program that is helping seniors afford their prescription drugs,\u201d Sewell said in a statement.<\/p>\n

\u201cEnding the Part D Premium Stabilization Program could mean higher premiums and greater financial strain for millions of seniors. The Affordable Premiums for Seniors Act will help ensure that Medicare beneficiaries have the stability and certainty they deserve.\u201d <\/p>\n

How the Medicare Part D Premium Stabilization Program WorkedWhat the Trump Administration Has Said<\/p>\n

CMS announced in July that it would end the demonstration program after reviewing 2027 plan bids and determining that insurers had sufficient experience operating under the redesigned Part D benefit.<\/p>\n

Mehmet Oz, administrator of CMS, defended the decision at the time, arguing the additional subsidies amounted to an unnecessary bailout for insurers.<\/p>\n

\u201cWe are stabilizing the market so this bailout is no longer needed,\u201d Oz said. \u201cPremiums will go up by less than $10 for most Medicare recipients, with many even seeing lower premiums.\u201d <\/p>\n

CMS has said the national base beneficiary premium for Medicare Part D will be $41.33 in 2027, but final premium information will be released later this year.<\/p>\n

\u201cThe other side is that this was designed as a temporary bridge, not a permanent subsidy. CMS argues insurers have now had enough time to adjust and continuing to subsidize premiums shifts billions of dollars of that cost back to taxpayers and can delay normal market pricing,\u201d Ryan said.<\/p>\n

\u201cThe question moving forward is whether the market is actually ready to lose the training wheels.\u201d<\/p>\n

What Happens Next<\/p>\n

The bill is facing an uncertain path in a Republican-controlled Congress and would need approval from both chambers before reaching President Donald Trump’s desk.<\/p>\n

In the meantime, Medicare beneficiaries are awaiting their final 2027 Part D premium announcements, which could provide a clearer picture of how much prescription drug coverage costs may rise after the stabilization program ends. <\/p>\n

\u201cDemocrats simply don\u2019t have the votes, and Republicans currently hold congressional power. Without bipartisan support, extending the subsidy will be difficult,\u201d Thompson said.<\/p>\n

Newsweek\u2019s reporters and editors used Martyn, our AI assistant, to produce this story. Learn more about Martyn here<\/a>. <\/p>\n

Contact Newsweek editors on this story: Jason Lemon<\/a> and Gray R. Thomas<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"Two Democratic lawmakers introduced a bill to reverse the Trump administration’s decision to end a Medicare prescription drug…\n","protected":false},"author":2,"featured_media":852006,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[59],"tags":[97,252,9041,253,1342,2824,1120,644],"class_list":["post-852005","post","type-post","status-publish","format-standard","has-post-thumbnail","category-health-care","tag-health","tag-health-care","tag-health-insurance","tag-healthcare","tag-medicare","tag-prescription-drugs","tag-seniors","tag-trump-administration"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/852005","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=852005"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/852005\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/852006"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=852005"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=852005"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=852005"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}