Trump Administration Plans Early End to Medicare Part D Subsidy Program

The Trump administration announced last month that the Medicare Part D Premium Stabilization Demonstration Program will end on December 31, 2026, a year earlier than originally scheduled. The program, created in 2024, provided temporary federal subsidies to keep premiums for standalone Part D prescription-drug plans from rising sharply after the Inflation Reduction Act’s redesign.

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Medicare Part D covers prescription drugs for millions of seniors and people with disabilities. Approximately 25 million Americans are enrolled in standalone Part D plans. The demonstration was intended as a short-term measure to address market instability in the 2024-2026 plan years. New York officials estimate that about 1.3 million seniors in the state could be affected by the change.

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CMS Administrator Dr. Financial-literacy instructor Alex Beene** advised beneficiaries to compare plans during Open Enrollment to mitigate any premium increases.

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• “While Republicans in Washington are hellbent on making life harder and more expensive for hard working Americans, I'm staying laser-focused on helping seniors and putting money back into New Yorkers' pockets,” — Kathy Hochul, new york governor

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• “This administration has money for bombs abroad, but not for our seniors here at home,” — Kirsten Gillibrand, hochul and senator

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