“The Trump administration is ending a temporary subsidy that has reduced premiums for Medicare Part D standalone prescription drug plans.”

The claim that the Trump administration is ending a temporary subsidy for Medicare Part D standalone plans is accurate. The program in question, officially titled the 'Part D Premium Stabilization Demonstration,' was established by the Centers for Medicare & Medicaid Services (CMS) in 2024. Its purpose was to mitigate premium volatility for standalone prescription drug plans following the implementation of major changes to the Part D benefit under the Inflation Reduction Act. Multiple authoritative sources, including the Wall Street Journal, KFF, and official reporting from CMS, confirm that the administration decided not to renew this demonstration beyond the 2026 calendar year. Administration officials, including CMS Administrator Mehmet Oz, have stated that the decision was based on the view that the subsidies primarily benefited insurance companies rather than enrollees. While the administration is not altering the underlying Medicare Part D benefit itself, the expiration of these subsidies is widely projected by analysts and health policy experts to lead to higher premiums for many beneficiaries enrolled in standalone drug plans starting in 2027.