Two Democratic lawmakers introduced a bill to reverse the Trump administration's decision to end a Medicare prescription drug subsidy program and extend it through 2029. Representatives Kathy Castor of Florida and Terri Sewell of Alabama unveiled the Affordable Premiums for Seniors Act this week. This legislation would continue the Medicare Part D Premium Stabilization Demonstration beyond 2026.
Just weeks earlier, the Trump administration announced that the Centers for Medicare & Medicaid Services (CMS) would end the program at the close of next year. The added strain of higher prescription drug costs is the last thing they need, so I will fight to reverse a recent HHS scheme to increase Medicare prescription drug costs for seniors and people with disabilities,” Castor said in a statement. Seniors worked hard for their earned Medicare benefits, and I am fighting to keep those benefits affordable and dependable.” Nearly 25 million people were enrolled in standalone Medicare Part D prescription drug plans in 2026, according to KFF.
Without the stabilization program, some beneficiaries will face higher premium increases in 2027 than they have experienced in several years. For retirees living on fixed incomes, many are already grappling with rising housing and health-care costs. By keeping the subsidy, lawmakers are arguing drug coverage could stay more affordable, but the Trump administration has argued the extra subsidies are no longer necessary.
The Affordable Premiums for Seniors Act would prevent CMS from ending the Medicare Part D Premium Stabilization Demonstration and instead continue the program through 2029. CMS created the subsidy in 2025 after changes made under the Inflation Reduction Act redesigned Medicare's prescription drug benefit. Those reforms included a $2,000 annual cap on out-of-pocket prescription drug costs, while shifting a greater share of costs onto Part D plans.
The stabilization program absorbed some of the shock while insurers adjusted to major changes in Medicare Part D. Ending it removes that cushion,” Michael Ryan, a finance expert and the founder of MichaelRyanMoney.com, told Newsweek. Supporters of extending it can point to evidence that the program prevented much sharper premium increases and gave seniors more predictable costs.
For someone living on a fixed income, even another $10 or $20 a month matters.” “Lowering premiums for people at the lower end of the income spectrum, particularly those who rely heavily on prescription drugs, is a definite benefit for beneficiaries living on fixed incomes,” Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek. At a time when seniors are already struggling to keep up with the rising cost of groceries, housing, health care, and everyday necessities, the Trump Administration should be doing everything it can to lower costs, not ending a program that is helping seniors afford their prescription drugs,” Sewell said in a statement. The Affordable Premiums for Seniors Act will help ensure that Medicare beneficiaries have the stability and certainty they deserve.” CMS announced in July that it would end the demonstration program after reviewing 2027 plan bids and determining that insurers had sufficient experience operating under the redesigned Part D benefit.
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