Humana IncEnd of Medicare Part D subsidy will reduce government payments to insurers, pressuring Humana's Part D margins and raising premiums for enrollees.
A Trump administration decision to end a Medicare Part D subsidy program means that three out of four enrollees will see higher plan premiums in 2027. About 45% of enrollees will see an $11 to $20 monthly increase, while another 30% will pay $10 or under more per month, according to a report in The Wall Street Journal. An administration official told the newspaper that the subsidy provided an incentive for health insurers to boost rates as the federal government would foot the additional amount. The subsidy provided approximately $3.6 billion in support in 2026, according to the Government Accountability Office. The top Medicare Part D insurers include Centene, Humana, and UnitedHealth Group.
Humana IncEnd of Medicare Part D subsidy will reduce government payments to insurers, pressuring Humana's Part D margins and raising premiums for enrollees.
UnitedHealth Group IncorporatedEnd of Medicare Part D subsidy will reduce government payments to insurers, pressuring UnitedHealth's Part D margins and raising premiums for enrollees.
Centene CorpEnd of Medicare Part D subsidy will reduce government payments to insurers, pressuring Centene's Part D margins and raising premiums for enrollees.