The Trump administration is preparing to end federal subsidies for prescription drug insurance plans under Medicare for US residents aged 65 and older, The Wall Street Journal reported Tuesday, according to AFP from New York. The reported change would take effect in December this year and could significantly raise prescription drug costs for about 25 million older Americans.

Citing unnamed administration officials, the newspaper said the federal government had provided $3.6 billion in subsidies to prevent Medicare insurance premiums from rising. KFF, a nonprofit health policy organization, said the average monthly premium for a subsidized plan is about $36. Prescription drug costs are an important issue for many retirees and people on fixed incomes, and the decision could become a political issue before the US midterm elections in November.

People currently enrolled in subsidized plans will learn their new premium rates in the fall. An administration official told the Journal that premiums for about one-quarter of affected customers would fall or remain unchanged in 2027. Another 30% would see monthly increases of less than $10, while the remaining 45% would face monthly increases of $11 to $20.