Trump announces health care plan to cut ACA costs requiring Congress’ approval
The Trump administration announced a plan Thursday to reduce U.S. health care costs, just as open enrollment for the Affordable Care Act ends in most states. But the plan lacks key details and largely repeats proposals previously outlined by President Donald Trump.
The proposal, dubbed “The Big Health Plan,” is being touted by administration officials as a broader effort to rein in health care costs, including reducing prescription drug prices, redirecting government subsidies from insurers to consumers and expanding price transparency requirements.
Trump has already proposed sending federal funds directly to patients to address skyrocketing premiums under the ACA.
“The government is going to give you the money directly,” Trump said in a video released by the White House. “It comes back to you, and then you take the money and buy your own health care.” »
Direct payments and other proposals, however, would require action by Congress, raising questions about how quickly — or if — they could be implemented.
Congressional Republicans negotiated a bill to extend the ACA’s enhanced tax credits, which expired Dec. 31 and led to higher premiums for millions of Americans.
In a call with reporters Thursday, administration officials provided no details on how the government would distribute the money directly to patients, how big those payments would be or who would qualify for them.
“We want this money transferred directly to people,” an administration official said. “There are many different ways to do this. We’re willing to work with Congress on how to get there.”
Larry Levitt, executive vice president of health policy at KFF, a nonpartisan research group, said the plan could send the ACA market into a “death spiral.”
The tax credits do not go directly to insurers in the form of additional money. They are applied each month to a person’s monthly premium bill, reducing the amount they owe.
“President Trump is suggesting here that people could use government subsidies to buy insurance that does not comply with ACA rules, including coverage for pre-existing conditions,” Levitt said.
The administration official said the plan does not “close the door” on ongoing negotiations to extend the enhanced subsidies. This month, the House passed a bill to extend the appropriations for another three years, and the Senate is currently drafting its own separate version. Trump, however, suggested he might veto an extension.
Trump’s preference, the administration official said on the call, is to send the money directly to patients.
On Thursday’s call, Dr. Mehmet Oz, administrator of the Centers for Medicare & Medicaid Services, also touted Trump’s “most favored nation” drug pricing policy, which ties U.S. prices to those paid in other wealthy countries.
Trump first announced the initiative last May, and the administration has so far reached deals with 14 major drugmakers.
Oz also highlighted TrumpRx, the new self-pay prescription drug platform expected to launch later this month.
Experts question how much people would actually save on the platform, since most insured patients already receive lower prices through their coverage and the Medicaid program pays some of the lowest rates.
The administration has urged Congress to pass legislation “without delay,” saying it would provide relief from what it calls the “Unaffordable Care Act” — a quip often used by Trump to criticize the program’s high costs.
