Trump Administration to End Medicare Subsidies for Older Americans
The change could leave some 25 million senior citizens facing serious cost increases for prescription drugs, the report said
NEW YORK: US President Donald Trump's administration plans to end federal subsidies for prescription drug plans offered to residents over 65 as part of its Medicare health insurance program, the Wall Street Journal reported on Tuesday.
The change could leave some 25 million senior citizens facing serious cost increases for prescription drugs, the report said.
Citing anonymous Trump administration officials, the newspaper said $3.6 billion in federal subsidies paid to stymie increases in Medicare insurance premiums will end this December.
Those on the subsidized plans will learn of their new premium rates in autumn.
The move could become a political issue ahead of November's US midterm elections, with prescription drug costs a key concern for many retirees and people living on fixed incomes.
Health policy nonprofit KFF said the average premium for a subsidized plan was around $36 a month.
A Trump administration official told the Journal that around a quarter of those on the subsidized plan will see their premiums decrease or stay the same in 2027, while another 30 percent will have a monthly increase of under $10.
The remaining 45 percent will have a monthly cost increase between $11 and $20, the official said.
