Updated · Letters from an American | Heather Cox Richardson · Jul 31
Trump Administration Ends $2,000 Medicare Drug Cap for 25 Million Part D Enrollees
Updated
Updated · Letters from an American | Heather Cox Richardson · Jul 31
Trump Administration Ends $2,000 Medicare Drug Cap for 25 Million Part D Enrollees
3 articles · Updated · Letters from an American | Heather Cox Richardson · Jul 31
Summary
$2,000 annual out-of-pocket drug caps for Medicare Part D recipients are set to end under a Trump administration move to scrap a Biden-era subsidy program.
CMS says the subsidies let insurers raise premiums and are no longer needed because other drug-cost controls, including some Medicare price negotiations, will remain in place.
Nearly 25 million enrollees were covered by the premium-stabilization effort, which had cut average Part D premiums by 40% in 2025 and was previously expected to continue through 2027.
The rollback follows earlier administration moves to cut the same Part D support after budget alarms, with the CBO projecting the program would add about $700 billion to the deficit.
The decision also fits a broader Republican pullback from federal health spending after a 2025 law cut Medicaid by $911 billion over 10 years.