Democrats propose bill to extend Medicare drug-price subsidy through 2029

Two Democratic members of the House, Kathy Castor of Florida and Terri Sewell of Alabama, unveiled the Affordable Premiums for Seniors Act, aiming to prolong the Medicare Part D Premium Stabilization Demonstration until 2029. The bill would block the Centers for Medicare & Medicaid Services from ending the subsidy that was created in 2025 after the Inflation Reduction Act reshaped Medicare drug coverage. Supporters cite a MedPAC analysis showing the program saved seniors about $312 in 2026 and helped keep monthly premiums predictable for those on fixed incomes.

The Trump administration, through CMS administrator Mehmet Oz, argues insurers have gained enough experience and that the subsidy functions as an unnecessary bailout, projecting only modest premium increases in 2027. Critics note that extending the aid shifts billions of dollars to taxpayers without tackling underlying drug-price growth. The proposal now faces an uncertain path in a Republican-controlled Congress and must clear both chambers before reaching President Donald Trump’s desk.