January 16, 2026
After more than 10 years of making statements like that about the affordable care act – today –President Trump announced his own healthcare plan. He’s been saying he was going to announce this plan since he campaigned the first time in 2015. So what is it??? Get to it Lisa.
Ok – here it is.
Ok ok ok – so what does it do?
So how much money is he talking about? Well – officially…he doesn’t say. The White House fact sheet on the great healthcare plan does *not* give a dollar amount – nor does it say who would qualify for this money. Is it everyone? Unlikely. Based on how our healthcare system works right now – whether you get any of this money Trump is talking about — would be based on your income and where you fall on the poverty line.
But what I can do is ball park some numbers for you. Right now –the average subsidy in the United States based on a single person making $50,000 a year who doesn’t smoke, has no kids and no spouse is – about $900 a year. If we still had that enhanced premium tax credit – which of course expired at the end of 2025– the total subsidy for the same person would have been about $2600 for the year. But remember that enhanced subsidy is gone and trump’s great healthcare plan does not extend it – so we’re really looking at a $900 subsidy.
I want to be very clear here. President Trump is not saying that the US government is going to give you money in a health savings account so you can pay your entire health insurance premium – what he’s saying is –using my example – the US government would give you that $900 subsidy in a health savings account so you can use that $900 as leverage to negotiate your own health insurance price.
I also want to make it clear – even though the title says the great healthcare plan — the president and the White House say this is not really a plan. It’s only a framework of a plan. It’s light on details on purpose because republicans in congress will have to write their own details into a piece legislation so trump’s great healthcare plan can become law. So we are no where near that point.
But there’s more to this framework I want to make sure you understand. The other key part that trump is really proud of and says will lower the overall cost of healthcare in this country is this idea of most favored nation when it comes prescription drug prices.
Seems like a simple concept….one that Trump says he was able to accomplish by threatening other countries with tariffs. He was successful in getting countries like France and the UK to increase the prices they pay for US drugs – but it’s unclear how this is going to shake out for you the regular consumer. The most favored nation pricing is for Medicare and Medicaid to purchase these drugs at a lower price….which could lower the price for all insurance companies. But maybe not. On top of that last year President Trump struck individual deals with 16 major US drug companies to lower prices for certain drugs. While the White House says those lower priced drugs would be available directly for cash-paying consumers through the government’s TrumpRX website, when I checked it today – that website still not functioning and again, these reduced drugs are not every drug. It’s only certain drugs. The great healthcare plan also calls for more prescription drugs to be available over the counter.
So besides the two big things – the subsidy going straight to a your new health savings account and the most favored nation on drug prices – what else does Trump’s plan include that will “massively” reduce healthcare costs and “massively” increase the quality of your health care. Well—the framework includes something health insurance critics has been griping about forever. The plan would cut out the costs associated with p-b-m’s pharmacy benefit managers – who are like middle men that negotiate pharmacy benefits between drug manufactures, insurers and contractors. But there is very little transparency about how they do that – Trump says there are kickbacks involved and he wants to end that practice. But it’s unclear how trump’s plan would regulate that. And the last big thing trump’s great healthcare plan would do centers around transparency….things like — making health insurance companies publish rates and coverage comparisons “in plain English” on their website and requiring health care providers or insurers that accept Medicare or Medicaid to prominently post their pricing and fees. That will include all hospitals in this country because basically all hospitals accept Medicare and Medicaid.
So – I know that’s a lot to digest – but the bottom line is – right now – this is a framework – a wish list – a bunch of talking points. It is not a law. It is nowhere near a done deal – and it’s unclear how even if all of these things happened – whether this plan would “massively’ reduce healthcare costs and “massively” increase the quality of your health care.
Read more from the White House about Trump’s healthcare plan here.
Read more about Trump’s most favored nation deals here and here.
Watch Trump’s announcement here.
Look at the subsidy calculator here.
