Trump’s ‘Comprehensive Healthcare Strategy’ Seeks to Reduce Medication Costs and Insurance Rates

Trump Urges Swift Congressional Action on New Health Care Plan

Photographer: George Frey/Bloomberg

President Donald Trump has called on lawmakers to quickly approve his newly introduced health care initiative, which is designed to reduce both prescription drug costs and insurance premiums. This move comes as the administration seeks to address a key concern for voters ahead of the upcoming midterm elections.

In a video address, Trump pressed Congress to enact his proposal, dubbed “The Great Healthcare Plan,” emphasizing the need for immediate action to provide relief to Americans.

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Highlights of the Health Care Proposal

• Trump’s plan would formalize voluntary agreements with pharmaceutical companies to reduce certain drug prices and expand access to over-the-counter medications.
• Instead of sending subsidies to insurers to lower premiums, the proposal would direct billions in financial assistance straight to consumers to help them purchase health coverage.
• The plan aims to eliminate so-called “kickbacks” to pharmacy benefit managers, which the administration claims drive up insurance costs.
• Greater transparency from insurers would be required, including clearer information on claim denials, wait times, and pricing, as well as simplified language to help consumers navigate their options.

Following the announcement, shares of major health insurers such as UnitedHealth Group, Cigna, and CVS Health saw modest gains, while pharmaceutical stocks generally declined.

Despite being promoted as a sweeping reform, the proposal lacks many specifics that lawmakers would need to consider for implementation.

Transparency and Consumer Protections

• Insurers would be mandated to publish rates and coverage details in straightforward language, enabling consumers to make informed choices.
• Companies would need to disclose on their websites the proportion of revenue spent on claims versus administrative costs and profits, the rate of claim denials, and average wait times for standard care.
• Any provider or insurer participating in Medicare or Medicaid would be required to clearly display pricing and fees, and comply with transparency rules.

Addressing Voter Concerns

This announcement is part of a broader strategy to respond to public unease over rising living expenses, including health care, housing, food, and utilities. Polls indicate these issues have negatively affected perceptions of the administration’s economic policies, with health care costs being a central frustration for many Americans.

Political Tensions Over Health Care Subsidies

As key subsidies expired at the start of the year, Democrats have criticized the administration for failing to address affordability, highlighting Trump’s ongoing efforts to dismantle the Affordable Care Act (Obamacare) and the Republican Party’s struggle to unite around an alternative plan.

The stakes are high: open enrollment for Obamacare plans is closing, and Congress remains divided on whether to restore the lapsed subsidies. Over 20 million people could see their premiums double, with the loss of tax credits hitting consumers in Republican-led states especially hard—an issue that could influence the balance of power in Congress.

Trump has complicated negotiations by threatening to veto any legislation that would reinstate the subsidies, instead advocating for direct payments to individuals to purchase insurance. Many health policy experts argue this approach is difficult to implement and may not improve care outcomes.

Meanwhile, senators are developing a bipartisan health care package that includes reforms to pharmacy benefit managers, though a similar effort failed late last year after opposition from Trump and Elon Musk.

Recently, Trump has criticized insurance companies, labeling Obamacare subsidies as “corrupt payoffs” and pledging to pressure insurers to lower costs.

Recent Developments and Ongoing Challenges

• Trump has negotiated with drug manufacturers to secure lower prices in exchange for tariff relief and maintains that voters will support his opposition to Obamacare subsidies.
• Health care has remained a persistent challenge for Trump, who has repeatedly promised but not yet delivered a comprehensive replacement for Obamacare.
• Democrats have focused on rising premiums as evidence that Trump’s policies are financially harming Americans, and last year’s attempt to extend subsidies led to a six-week government shutdown.
• Internal divisions among Republicans have surfaced, with some centrist lawmakers supporting efforts to restore subsidies, though such measures are unlikely to pass the Senate.
• Trump’s tax and spending package last year included significant cuts to Medicaid, which could result in nearly 12 million Americans losing coverage over the next decade.
• To mitigate the impact, the administration has allocated rural health funds to states, though these come with conditions tied to Trump’s preferred health policies.

Enrollment and Industry Impact

According to the Centers for Medicare & Medicaid Services, about 22.8 million Americans enrolled in ACA plans for 2026, down from 24.3 million the previous year. Experts warn that enrollment could decline further as consumers face higher premiums.

Insurers most involved in the Obamacare marketplace include Centene Corp., Molina Healthcare Inc., and Oscar Health Inc., while UnitedHealth, Elevance Health, and Cigna also participate and could be affected by reduced enrollment.

Further Reading from Bloomberg Businessweek

With reporting from Skylar Woodhouse.

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