Medicare drug plan subsidies to end, WSJ reports

The Trump administration plans to end federal subsidies for Medicare prescription drug plans for residents over 65, the Wall Street Journal reported.

The newspaper, citing anonymous Trump administration officials, reported that $3.6 billion in subsidies used to limit increases in Medicare insurance premiums will end in December. It said the change could leave about 25 million senior citizens facing serious prescription drug cost increases.

People on the subsidized plans are expected to learn their new premium rates in the autumn, according to the Journal.

Health policy nonprofit KFF said the average premium for a subsidized plan was about $36 a month. A Trump administration official told the Journal that about a quarter of people on subsidized plans will see premiums decrease or stay the same in 2027, while another 30% will have a monthly increase of less than $10. The remaining 45% will have a monthly cost increase of $11 to $20, the official said.

The move could become a political issue before November's US midterm elections, with prescription drug costs a key concern for many retirees and people on fixed incomes.