A recent report by The Wall Street Journal revealed that the Donald Trump Administration announced its intention to end a program that reduced the cost of monthly premiums for drug coverage for Medicare beneficiaries.
The article, along with publications from other American media, such as The New York Timespoints out that this initiative could affect millions of Americans, mainly over 65 years of age, who could face an increase in their drug premiums next year.
The New York Times explains that between 2025 and 2026 the federal government gave health insurers millions of dollars in subsidies to keep drug premiums low.
Without these subsidies, according to the outlet, Medicare beneficiaries would have to pay hundreds of dollars more per year for their health plans.
Both media cite the administrator of the Centers for Medicare and Medicaid Services (CMS), Mehmet Oz, who stated on July 28 that the subsidies were canceled because “insurers no longer needed them.”
“Premiums will increase by less than $10 for most Medicare beneficiaries, and many will even see lower premiums,” the administrator said.
Despite the Trump administration’s announcement, it is still unclear how many people will have to pay more or what the increase will be. The CMS said it expects to publish new monthly premiums for individual plans in September.
The Wall Street Journal states that approximately 25 million Americans have independent plans.
Also read: What Trump’s new agreement to lower the price of weight loss drugs means