Trump Pushes 'Great Healthcare Plan' to Lower Drug Costs

President Donald Trump has unveiled a new healthcare framework, urging Congress to pass it into law immediately to lower drug prices and insurance premiums. The move is widely seen as an effort to address a key political vulnerability for his party ahead of the midterm elections.

In a video message, Trump called his proposal "The Great Healthcare Plan" and demanded swift legislative action to provide "immediate relief to the American people."

What's Inside Trump's Healthcare Proposal?

While the White House has described the proposal as a comprehensive plan, it remains light on many details crucial for legislative review. The core objectives focus on reducing costs for consumers and increasing transparency.

Key components of the plan include:

• Codifying Drug Deals: Making the voluntary price-reduction deals Trump has secured with drugmakers legally binding.

• Over-the-Counter Access: Expanding the range of medications available for purchase without a prescription.

• Direct Subsidies: Rerouting billions in government subsidies for insurance. Instead of going to insurance companies, the funds would be sent directly to consumers to purchase health plans.

• Targeting Middlemen: A measure aimed at ending "kickbacks" paid to large brokerage middlemen, which the plan claims artificially inflate the cost of health insurance.

Mandating Transparency from Insurers and Providers

A significant portion of the proposal is dedicated to forcing greater transparency from the healthcare industry. The plan would require insurance companies to simplify their language to help consumers make better decisions.

Under these new rules, insurers would need to:

• Publish rates and coverage comparisons in "Plain English."

• Disclose the percentage of revenue paid out in claims versus their overhead and profits.

• Report the percentage of insurance claims they reject.

• Publicize average wait times for routine care.

Furthermore, any healthcare provider or insurer participating in Medicare or Medicaid would be required to prominently display their prices and fees.

The Political Stakes: Midterms and Obamacare's Shadow

The president's announcement comes as his administration works to counter public anxiety over the rising cost of living, which has negatively impacted perceptions of his economic agenda. Healthcare costs remain a central point of frustration for many voters.

Democrats have capitalized on the expiration of key subsidies under the Affordable Care Act (ACA), also known as Obamacare, to criticize the administration over affordability. The issue underscores Trump’s long-standing struggle to repeal and replace the signature policy of his predecessor, Barack Obama, and unite Republicans behind an alternative.

A High-Stakes Impasse Over Subsidies

The political timing is critical. Open enrollment for Obamacare plans has just ended, but Congress is deadlocked on how to reinstate the lapsed subsidies. This impasse threatens to cause premiums to double for over 20 million people.

The situation is particularly precarious for the Republican party, as the tax credits largely benefited consumers in GOP-led states, creating a significant risk in a tightly contested election for control of Congress.

Trump has further complicated any potential legislative solution by threatening to veto bills that would revive the expiring subsidies. He is instead committed to his plan of giving subsidies directly to Americans—an approach many health experts argue would be difficult to implement and offers no guarantee of better healthcare outcomes.