Medicare to end prescription drug subsidy program after 2026

WASHINGTON — The Centers for Medicare & Medicaid Services (CMS) announced that Medicare will end its temporary Part D prescription drug premium subsidy program after 2026, a move that could lead to higher monthly premiums for millions of beneficiaries beginning in 2027.

The program was introduced to help stabilize Medicare Part D premiums during the implementation of major prescription drug benefit changes. CMS said insurers have now adjusted to those reforms, making the temporary subsidies no longer necessary.

Administration officials said most beneficiaries are expected to see premium increases of less than $10 per month, although some could face larger increases. Final 2027 Medicare Part D premiums will be announced during the fall enrollment period.