Medicare Part D Premium Shock: How Seniors Can Prepare For The End Of The Subsidy
The Trump administration announced on July 28 that it's ending a key health insurance subsidy program designed to keep premiums for seniors' prescription drug plans down. The administration reasons that the program benefits insurance companies. But it also affects those seniors who depend on such subsidies to keep their everyday expenses in check.
The plan that will end is called the Part D Premium Stabilization Demonstration -- a two-year program created under the Inflation Reduction Act. In 2025 and so far in 2026, the plan delivered billions of dollars to Part D plans and worked to cut average prescription drug plan (PDP) premiums by $26 in 2025 and $16 in 2026.
While those bumps in premiums may seem minor, they matter to many, particularly those living on Social Security benefits alone. If you're one of the older Americans with a stand-alone Medicare Part D plan who will get hit once again with higher premiums, here are three ways you can prepare for the 2027 premium shock.
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