OPINION: New York’s Seniors Pay Price For Medicare Part D Subsidy Cuts Set To Raise Already Skyrocketing Prescription Drug Prices: Governor Hochul
Governor Hochul Slams Trump’s New Medicare Cuts That Will Raise Prescription Drug Costs for 1.3 Million Seniors Across New York
Editor’s note: This is on top of the cuts to Medicaid that have already affected many New Yorkers who were just above low-income, making it impossible for New York to continue its Essentials Plan, which had the effect of ensuring many New Yorkers who fall outside of low-income but still are not able to afford their expenses along with healthcare that they have to pay for were able to have health insurance. They were able to be secure in the knowledge that if they or their kids got sick, they could visit the doctor and not have to pay for it. The individuals terminated had an annual income of between 200-250% of the Federal Poverty Level, which is itself extremely low and not controlled on a state-by-state basis in any way. It is one-size-fits-all for the entire country, whereas residents of New York City, for instance, would need a much higher income that someone in, for example, Kansas, where the cost of living is much lower than in a big city. Medicaid also suffered from quiet cuts by changing work requirements and eligibility, making many who were previously qualified unable to re-enroll, thus reducing the number of people with health insurance still further. As we had discussed with an EMT, this lack of insurance coverage has rolling negative effects. In essence, an ambulance and a hospital are ethically barred from turning someone away if they can’t pay for the care they receive. When this happens, if someone can’t afford it, no number of collection calls and negative credit reportings will have the intended consequence of causing payment to occur. Since fewer and fewer people will be covered overall, this ethical imperative will be carried on the backs of the hospitals themselves, with no aid forthcoming from the federal government. While most of our readers are in New York, which is projected to have less negative effects due to the governor’s committment to protecting this sector, other states will not be so fortunate. Rural hospitals, which have already been experiencing hardship, are likely to close as well. The doctors devoted to their patients will no longer be able to provide care. Also worth noting is that the subsidies mentioned herein are different than the other subsidies, for regular Americans, to help them afford their health insurance, which were also allowed to expire. All told, it is likely that the percentage of Americans enrolled in health insurance is likely to go from its recent all time high to an all-time low number, as so many insurance plans are not affordable for those who have a moderate income.
Trump’s Plan to End Medicare Part D Subsidies is Expected to Take Effect in 2027 and Lead to Higher Monthly Premiums for Millions of Seniors Nationwide
While Trump Continues to Raise Costs for Seniors, Governor Hochul’s Policies Deliver Savings on Healthcare For Seniors Statewide
Governor’s Expansion of the Medicare Savings Program Has Helped More Seniors Save More Than $7,000 Per Year On Healthcare Costs
Governor’s Ban on Insulin Co-Pays Saved New Yorkers Around $25 Million Since 2025
See the press conference video here.
Governor Kathy Hochul delivers remarks at the JASA Club 76 Older on the Upper West Side of Manhattan.
Governor Kathy Hochul today announced that the Trump Administration’s controversial plan to end Medicare Part D subsidies will raise prescription drug costs for around 1.3 million seniors across New York State, according to policy analyst estimates.
Governor Hochul joined seniors in New York City today to demand that the Trump Administration stop these planned Medicare cuts and end their crusade to raise costs for millions of seniors across the nation. If the Trump Administration proceeds with its plans to end Medicare Part D subsidies, impacted seniors could see higher monthly premiums starting in 2027.
As Governor Hochul slammed Trump’s latest plans for Medicare cuts, she also highlighted how New York has delivered healthcare savings for seniors through her major expansion of the Medicare Savings Program, banning copays for insulin, and other initiatives.
“The Trump Administration’s latest attack on Medicare will raise prescription drug costs for seniors across New York — and I’m calling on Trump to reverse these Medicare cuts now,” Governor Hochul said. “While Republicans in Washington are hellbent on making life harder and more expensive for hard-working Americans, I’m staying laser-focused on helping seniors and putting money back into New Yorkers’ pockets.”
Last week, the Trump Administration announced it would end the Medicare Part D Premium Stabilization Demonstration Program by the end of the year – a year earlier than intended. This program, initiated by the Biden Administration in 2024, was intended to stabilize stand-alone prescription drug plan premiums for enrollees, by providing subsidies to plan sponsors. Analysts estimate that these subsidies offset the average prescription drug plan premium by $16 per month in 2026.
Raising prescription drug costs that millions of older New Yorkers rely on every day risks putting additional financial pressure on seniors living on fixed incomes. Since taking office, Governor Hochul has been committed to making life more affordable for all New Yorkers, including seniors. Her initiatives include:
- Expanded Medicare Savings Program: The Medicare Savings Program helps Medicare beneficiaries living on limited incomes by paying their Medicare Part B premiums. Governor Hochul’s expansion of the program increased enrollment by 20% to serve more than 1 million New Yorkers today. This program saves eligible New Yorkers $203 per month, meaning $2.4 billion in Medicare Part B premiums every year that New Yorkers do not have to pay.
- Eliminating Co-Pays for Insulin: 1.58 million people are living with diabetes in New York and according to the American Diabetes Association, people with diabetes have medical expenses that are 2.3 times higher than people who do not have diabetes and the impact is even larger for communities of color, which face disproportionately high diagnosis rates. Governor Hochul spearheaded the most expansive prohibition policy against insulin cost-sharing in the nation, saving residents millions of dollars. Estimates show that this proposal has saved New Yorkers $25 million over the last two years.
- EpiPen Price Cap: The Governor signed legislation in 2024 that reduced the sky-high costs of epinephrine auto-injector (“EpiPen”) devices for consumers with commercial health insurance. The legislation required health insurers to cover EpiPens and capped the amount consumers would be required to pay out-of-pocket at $100, making the life-saving treatment more affordable for the New Yorkers who need it. The initiative has saved New Yorkers approximately $2.4 million in 2026.
The Trump Administration’s latest attack on Medicare will raise prescription drug costs for seniors across New York — and I’m calling on Trump to reverse these Medicare cuts now.”
State Senator Cordell Cleare, Chair of the Senate Aging Committee said, “I commend the Governor for her continued commitment to expanding the Medicare Savings Program, which is an initiative I have championed in the Senate. You should be able to enroll in it with the same ease as joining a streaming service. I also join the Governor in vehemently opposing Federal Policies that are a slap in the face to Older New Yorkers who deserve not only the best care but to be able to live and thrive while aging in place with no worries about affordability.”
Congressman Jerry Nadler said, “Donald Trump’s Big Ugly Bill already kicked 500,000 New Yorkers off potentially life-saving health coverage, with hundreds of thousands more expected to suffer the same loss next year. Now, his cruel attack on Medicare Part D will force millions of seniors in New York and across our country to pay more for the lifesaving medicines they rely on every day. I will continue fighting to protect our seniors from these devastating policies in Congress, and I thank Governor Hochul for her leadership to lower costs for New York’s seniors.”
Assemblymember Rebecca Seawright said, “As Chair of the New York State Assembly Committee on Aging, I know that even small increases in prescription drug costs can have devastating consequences for older adults living on fixed incomes. Seniors should never be forced to choose between filling a prescription and paying for groceries, rent, or other necessities. New York has made meaningful progress by expanding access to affordable healthcare and lowering out-of-pocket costs for older adults, and we cannot allow that progress to be undermined. I thank Governor Hochul for standing up for New York’s seniors and fighting to protect affordable access to the medications they depend on every day.”
Assemblymember Linda B. Rosenthal said, “Donald Trump promised Americans he would lower the cost of living on day one. However, after 500 days in office, he has deliberately done the exact opposite. His latest war on affordability comes in the form of ending Biden-era Medicare Part D subsidies that lowered the cost of prescription drugs for millions of older Americans, making it harder for people to access care. We, in New York, are fighting back by eliminating the cost of co-pays for insulin, capping the cost of Epi-Pens and expanding the Medicare Savings Program. New Yorkers must not be treated like financial pawns in Donald Trump’s petty game of politics, which is why I will continue to stand up to the Trump Administration, while also working with the Governor and my colleagues in government to make life more affordable for all New Yorkers.”
Banner Image: Governor Kathy Hochul delivers remarks at the JASA Club 76 Older on the Upper West Side of Manhattan. Image Credit – Gov. Hochul
Governor Kathy Hochul
Governor Kathy Hochul began her career in public service on her local Town Board before serving as Erie County Clerk, and then as a member of Congress for New York’s 26th Congressional District. She more recently served in statewide office as Lieutenant Governor and now as the first female Governor of the State of New York.
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