President Trump’s new healthcare plan would replace insurance subsidies with direct payments into health savings accounts, aiming to lower costs.
WASHINGTON: President Donald Trump has unveiled a new healthcare framework that would replace government insurance subsidies with direct payments into individual health savings accounts.
The White House says the plan aims to lower drug prices and insurance premiums while increasing cost transparency and insurer accountability.
“We have gotten into this great healthcare plan a framework that we believe will help Congress create legislation,” said Centers for Medicare & Medicaid Services Administrator Mehmet Oz.
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The administration is calling on Congress to pass the plan into law and expects it to receive bipartisan support.
It would codify Trump’s “most-favored-nation” drug price deals with 14 manufacturers for Medicaid and cash payers.
A key component replaces Affordable Care Act insurance subsidies with direct payments to Americans’ health savings accounts.
Critics argue this shift could force lower-income Americans toward short-term or high-deductible insurance plans.
The announcement coincides with the closure of Obamacare enrollment, as millions face rising premiums.
Average premiums are projected to jump to $1,904 in 2026 from $888 in 2025, according to health policy firm KFF.
The Trump plan makes no mention of reinstating expired COVID-era tax credits that provided broader subsidies.
“This does not specifically address those bipartisan congressional negotiations that are going on,” a senior White House official said.
The plan also targets pharmacy benefit managers and imposes new transparency rules on insurance companies.
Insurers would be required to publicly disclose profits, claim denial rates, and coverage comparisons in plain English.
Providers accepting Medicare or Medicaid funds would also have to post their pricing and fees publicly.
Oz confirmed the Trump administration did not discuss the plan with health insurance companies prior to its release. – Reuters
