Trump slashes Medicare drug subsidies, cutting against affordability message

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The Hill's Headlines — August 1, 2026

The Hill's Headlines — August 1, 2026

The end of a subsidy program that helped keep costs down for Medicare drug coverage could leave millions of seniors with higher monthly costs, a move that undermines the Trump administration’s message of cutting drug costs.

President Trump often touts his push for access to cheaper drugs through the TrumpRx platform and making “most-favored-nation” deals with drug companies.

But healthcare advocacy and policy organizations have said the end of the subsidy program will raise premium costs and put a burden on seniors at a time when costs are already high.

“President Trump has had a lot of strong rhetoric on drug prices and negotiating deals with manufacturers to lower prices, and they’ve taken a lot of different steps to try to bring drug prices down,” Juliette Cubanski, vice president and director of the Program on Medicare Policy at KFF, told The Hill.

“But it’s also true that this move to end these extra premium subsidies for some Medicare drug plans cuts in the other direction because it could translate to higher premium costs for millions of people with Medicare,” she said.

The Biden-era Medicare Part D subsidies will expire at the end of the year and won’t be offered in 2027, the Centers for Medicare and Medicaid Services (CMS) said — a decision that comes just months after Republicans in Congress allowed ObamaCare subsidies to expire. 

Medicare Part D is optional insurance that helps cover brand-name and generic prescription drugs. It’s offered through........

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