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Why The Trump Administration Was Right To End The Medicare Part D Insurer Bailout

The temporary and extralegal bailout that provided billions of dollars in subsidies to insurers cost the program far more than Dems claimed.

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The Trump administration’s recent decision to end a temporary Part D subsidy program in 2027 attracted much press attention, and some criticism. The California Democratic Party claimed on  X that “25 million people, mainly seniors, count on Medicare Part D to afford their prescriptions. Donald Trump is putting their health on the line by ending the program.”

This is  absurd—and false. The Trump administration is not  ending the Part D program (established by Congress in 2003) and couldn’t do so even if it wanted to. However, it is ending a temporary and extralegal bailout program that provided billions of dollars in subsidies to insurers. That’s because Democrats made changes to the program that have cost far more than they claimed.

The Bailout, Explained

In summer 2024, the Biden administration announced a unilateral  “premium stabilization demonstration.” The Centers for Medicare and Medicaid Services (CMS) noted the new program would start at the2025 plan year. This was just in time for premium announcements to land in seniors’ mailboxes just prior to the November 2024 election.

The program came into effect largely due to Democrats’ Inflation (Reduction) Act. That law shifted........

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