Dr. Oz says 'many' seniors will see lower premiums next year — but only about a quarter are projected to

Dr. Oz says 'many' seniors will see lower premiums next year — but only about a quarter are projected to

Joseph Zeballos-Roig

Wed, July 29, 2026 at 11:30 PM GMT+3 4 min read

The Trump administration is winding down a program that slashed premiums for Medicare's prescription drug plans, a step that may leave American seniors facing higher charges for their health coverage.

Dr. Mehmet Oz, the head of the Center for Medicare and Medicaid Services, wrote Tuesday in a post on X, "many" seniors would see lower premiums for drug coverage. But, a Trump administration official told the Wall Street Journal that only about a quarter of enrollees would see their premiums remain flat or lower.

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The initiative originated under the Biden administration in 2024. For the following two years, the federal government provided subsidies to restrain premium increases for Medicare's Part D standalone plans, which cover prescription drugs. Health insurers received $9.8 billion in federal subsidies in 2025 and 2026, according to the Government Accountability Office.

Dr. Oz said the Biden-era program amounted to an unnecessary government lifeline that benefited private health insurers. Thus, the clock is striking zero for the program.

"We are stabilizing the market so this bailout is no longer needed," Dr. Oz wrote. He added that "every Medicare beneficiary" will keep access to affordable plans as the Trump administration continues efforts to expand Medicare coverage to include weight-loss drugs.

"Premiums will go up by less than $10 for most Medicare recipients" he wrote.

Millions of Americans could experience higher insurance premiums

About 25 million Americans are now enrolled in standalone prescription drug plans under Medicare Part D, first set up in 2006 by former President George W. Bush. Biden's program focused on that plank of drug coverage, which is designed to supplement traditional Medicare.

In February, the GAO projected possible premium increases if the program hadn't been established. Using CMS data, the agency concluded that 4 million beneficiaries, or 30%, would have seen average monthly premiums increase by $40 to $100 per month. For 1 million enrollees, or 7%, their premiums would skyrocket by at least $100.

"If these premium increases had taken effect, CMS officials expected widespread changes in enrollment for beneficiaries in standalone drug plans, which could disrupt beneficiaries' access to their medications," the government's in-house watchdog said.

Experts say that monthly premiums could grow at a faster rate next year for seniors. Juliette Cubanski, a Medicare expert at the Kaiser Family Foundation, a nonpartisan health policy research group, said in a KFF blog post that the program had "worked as intended" in leveling off premium increases and preserving stable enrollment for Part D coverage.

"Some Part D stand-alone drug plan enrollees could face a larger premium increase for drug coverage next year than in recent years, though plan-specific premium amounts are not yet known," Cubanski said.

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A possible political backlash

Trump's move to end the Part D subsidies lines up with other steps he's taken to unwind federal support that lowered the cost of health insurance plans. Last year, the White House allowed temporary Affordable Care Act subsidies to expire.

CMS is expected to announce 2027 Plan D charges in September, raising the possibility of seniors experiencing sticker shock just ahead of the November midterms.

Democrats are zeroing in on those decisions from Trump to argue he's responsible for the swelling costs of everyday life in America, ranging from higher gas and grocery prices to paying more for a health insurance plan.

"For older Americans living on fixed incomes, even an extra ten or twenty dollars a month can mean choosing between filling their prescription, paying the electric bill, or buying groceries," said Leslie Dach, chair of the liberal-leaning health group Protect Our Care, in a statement. "Instead of lowering costs, Donald Trump and Republicans continue to force seniors to pay more while handing tax breaks to billionaires and big corporations."

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This article originally appeared on Moneywise.com under the title: Dr. Oz says 'many' seniors will see lower premiums next year — but only about a quarter are projected to

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