Health

 Consumer Affairs -  Millions of seniors enrolled in Medicare drug plans are likely to see substantial premium increases in 2026, as federal officials prepare to cut back a subsidy program that helped shield enrollees from escalating prescription drug costs this year.

The extra subsidy—launched by the Biden administration in 2025 to stabilize Part D drug plan premiums—pumped $6.2 billion in federal funds into the program. That financial cushion helped keep monthly premiums for basic plans around $36, nearly 20% below what they would have been without the assistance, according to consulting firm Avalere Health, the Wall Street Journal reported.

But that buffer won’t last.

The Trump administration, which is overseeing Medicare’s budget heading into 2026, is planning a 40% reduction in the subsidy, dropping monthly insurer support from $15 to $10 per enrollee, according to officials at the Centers for Medicare and Medicaid Services (CMS).