Medicare Drug Costs 2027
A change in Washington could soon show up in millions of seniors’ monthly prescription drug bills.
The Big Story
The Trump administration announced it will end a federal subsidy that has helped keep Medicare Part D prescription drug premiums lower. The change affects about 20 million people enrolled in private Medicare drug plans and could begin affecting premiums as soon as next year.
The Two Spins
From the Left
Ending the subsidy could increase monthly premiums for millions of seniors.
Higher costs may cause some people to skip medications or drop coverage.
From the Right
The subsidy adds billions to federal spending without lowering drug prices.
Insurers should compete on price instead of relying on government support.
What This Means for Us
Premium changes won’t be the same for everyone. While some seniors may pay more for prescription drug coverage in 2027, others may find lower-cost plans during Medicare’s open enrollment. Final plan prices will be released this fall.
How They Make Money
UnitedHealth Group
More than half of the federal payments would have gone to UnitedHealth Group without this change, making it the program’s largest financial beneficiary.
UnitedHealth Group isn’t just an insurance company. Through its Optum business, it also owns doctor practices, pharmacies, and pharmacy benefit services.
Takeaway
Healthcare isn’t just about medicine, it’s also one of America’s biggest businesses.
The Number That Stuck With Me
$447.6 billion
UnitedHealth Group generated $447.6 billion in revenue last year, making it one of the biggest companies in the world.
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