Tens of millions of seniors in the United States may soon be paying more for their health insurance, according to a report by ABC News. At the end of the year, some premiums could increase by as much as $20 a month, a shift tied to a change in a federal program that helps lower prescription drug costs for older Americans.
The report explains that a move by the Trump administration would mean millions of Americans who rely on a particular Medicare subsidy will end up paying more for their drug premiums. The subsidy has, for the last two years, been aimed at holding down the cost of prescription coverage for people enrolled in Medicare.
For those two years, the federal government spent billions of dollars on the program, which was designed to lower the cost of drug premiums for Americans who are 65 or older and on Medicare. It was put into place by the Biden administration to offset premium increases for Medicare prescription plans known as Part D.
According to the report, roughly 25 million Americans rely on this program, which experts say costs about $36 a month on average. Those subsidies are now set to end after this year, removing the cushion that has been used to keep Part D premiums lower for a large share of Medicare enrollees.
The Trump administration argues the subsidies are no longer needed. CMS administrator Dr. Oz, writing on social media, said the administration is stabilizing the market, arguing that premiums will go up by less than $10 for most Medicare recipients and that seniors will still have access to low-cost plans.
For now, it remains unclear just how much more seniors will pay for these same plans. According to the report, they are not likely to find out until this fall, leaving many enrollees waiting to learn the exact impact on their prescription drug premiums for the coming year.