The prescription drug benefit is used by millions of seniors.ABC NewsByMichelle Stoddart andArthur Jones IIJuly 29, 2026The Trump administration is ending a key health insurance subsidy program that aimed to keep premiums for seniors' prescription drug plans in check, claiming that it benefits corporate insurance companies, according to Centers for Medicare & Medicaid Services Administrator Mehmet Oz.Medicare Part D -- the government health insurance program's prescription drug benefit -- is used by tens of millions of older or disabled beneficiariesThe program's subsidies are set to expire at the end of the year, the administration announced Tuesday.That move will likely result in higher prescription costs and increase premiums for about half of recipients, according to an administration official.[…]The move comes as Affordable Care Act subsidies have expired and health care costs remain a top issue for voters ahead of the midterm elections. The ACA subsidies helped lower the out-of-pocket costs for monthly premiums for people who purchased health care through the health insurance marketplace.
The ABC News goes on to report,
President Donald Trump has repeatedly vowed he wouldn't allow Medicaid to be cut, but House Republicans' bill to fund his agenda aims to cut hundreds of billions of dollars from the program that provides health care for poor, elderly and disabled Americans.For several months, Trump has promised not to touch the program, though on Monday he urged Republicans to "UNIFY" around the "one, big beautiful bill," which plans to slash Medicaid spending by imposing work requirements for recipients, make more frequent eligibility checks, and penalize states like New York and California that offer Medicaid to illegal immigrants.
The program's subsidies are set to expire at the end of the year, the administration announced Tuesday.That move will likely result in higher prescription costs and increase premiums for about half of recipients, according to an administration official.
"Project 2025 was pretty blunt about wanting to push more people into Medicare Advantage," she says, referring to the Heritage Foundation's blueprint for a second Trump presidency. "One way to really accelerate that is to make it very expensive to stay in traditional Medicare."To avoid the higher premiums for drug coverage, patients may move away from traditional Medicare plans and toward Medicare Advantage plans. While Medicare Advantage may have lower premiums, she says there are tradeoffs, including a more limited network of providers and hospitals that accept Medicare Advantage.
Key Takeaways
- Project 2025 is a policy proposal from the conservative think tank the Heritage Foundation that some believe will influence the second Trump administration.
- The document suggests many policy changes that could affect people on Medicare.
- Some of the most significant ideas for Medicare in Project 2025 include shifting Original Medicare to a value-based care model, making Medicare Advantage plans the default option, and eliminating price controls for prescription drugs.
With President Donald Trump back in office, many Medicare beneficiaries wonder what changes could happen to the public health insurance program for people who are over 65 or living with disabilities.Trump has not made any official announcements regarding his goals for Medicare, but examining Project 2025 could provide some hints. Project 2025 is an approximately 900-page policy proposal published by the conservative think tank The Heritage Foundation that lays out plans for transforming the U.S. government.



