The plan follows the end of Obamacare subsidies that lowered premiums; many details remain unclear<\/p>\n<\/h3>\n
By I. Edwards HealthDay Reporter<\/b>
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TUESDAY, Jan. 20, 2026 (HealthDay News) \u2014 With the end of federal health insurance subsidies, President Donald Trump<\/a> has floated a new plan aimed at changing how Americans pay for insurance and medical care.<\/p>\n At the center of the plan? A proposal to send money directly to Americans through health savings accounts.<\/p>\n \u201cThe government is going to pay the money directly to you,\u201d Trump said in a prerecorded video released by the White House. \u201cIt goes to you and then you take the money and buy your own health care.\u201d<\/p>\n Democrats have pushed back on the idea, saying the accounts would not replace the tax credits that helped lower monthly premiums for many Americans under Obamacare.<\/p>\n Trump\u2019s proposal also calls for lowering drug prices and requiring insurance companies to be more open about costs, denied claims and wait times for care.<\/p>\n For years, Trump has faced criticism for not offering a full alternative to the Affordable Care Act, President Barack Obama<\/a>\u2019s signature legislation. During Trump\u2019s first term, efforts to repeal and replace the law failed.<\/p>\n While campaigning in 2024, Trump said he had only \u201cconcepts of a plan.\u201d His new proposal still lacks many details.<\/p>\n Dr. Mehmet Oz<\/a>, who leads the Centers for Medicare & Medicaid Services, described it as a framework lawmakers could build on.<\/p>\n A White House official said the administration has discussed the proposal with members of Congress, but did not name any lawmakers currently addressing the plan.<\/p>\n Republican Sen. Bill Cassidy<\/a> of Louisiana, a medical doctor, said his committee \u201chas and will take action on the president\u2019s affordability agenda,” the Associated Press<\/em> reported.<\/p>\n The White House has not said how much money people would receive through the savings accounts, or who would qualify. Similar proposals in the past were criticized for helping higher-income individuals more than those with limited means.<\/p>\n When asked whether the proposal would fully cover people\u2019s health costs, White House press secretary Karoline Leavitt<\/a> didn’t answer directly, but said “every single American who has health care in the United States will see lower costs as a result.\u201d<\/p>\n The proposal comes after Obamacare subsidies expired at the end of 2025.<\/p>\n Some lawmakers are still working on a compromise to extend the subsidies. Sen. Bernie Moreno<\/a>, an Ohio Republican, is part of a bipartisan group proposing a two-year extension, with added limits on eligibility and an option for savings accounts in year two.<\/p>\n Trump\u2019s proposal would also restore payments that help insurers reduce out-of-pocket costs for low-income customers on mid-level plans.<\/p>\n Further, it would make certain medications available over the counter and tie U.S. drug prices to lower prices paid in other countries.<\/p>\n The White House said medications will soon be sold directly to consumers through a new website, TrumpRx.gov, though no drugs were listed as of Tuesday.<\/p>\n More information<\/strong><\/p>\n Learn more about President Trump’s health care plan<\/a>.<\/p>\n