Dr. Oz says 'many' seniors will see even lower premiums next year — but only about a quarter are projected to see flat or lower costs at all

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.