Trump proposes direct health payments to replace insurance subsidies in new heal

WASHINGTON, Jan 15 — President Donald Trump has unveiled a new healthcare framework that would replace government insurance subsidies with direct payments into individual health savings accounts, aiming to lower costs and increase transparency.

The White House says the plan targets lower drug prices and insurance premiums while imposing new accountability measures on insurers.

"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.

A key component replaces Affordable Care Act insurance subsidies with direct payments to Americans' health savings accounts.

The administration is calling on Congress to pass the plan into law and expects it to receive bipartisan support.

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 projected to jump to $1,904 in 2026 from $888 in 2025, according to health policy firm KFF.

The plan also codifies Trump's "most-favored-nation" drug price deals with 14 manufacturers for Medicaid and cash payers.

Insurers would be required to publicly disclose profits, claim denial rates, and coverage comparisons in plain English under new transparency rules.

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.

The plan makes no mention of reinstating expired COVID-era tax credits that provided broader subsidies.