President Donald Trump has presented a new framework for health care reforms to Congress, urging lawmakers to implement several significant policy changes “without delay.” This proposal arrives at a time when health care costs, particularly health insurance premiums, are a pressing issue for many Americans. Notably absent from Trump’s outline is any mention of enhanced tax credits, which expired in December 2025 and had previously helped around 22 million Americans maintain lower premiums through the Affordable Care Act (ACA).
In a five-minute video, Trump emphasized his desire for Congress to allocate funds directly to citizens to assist with health insurance or healthcare costs. “The government is going to pay the money directly to you. It goes to you, and then you take the money and buy your own health care,” he stated. Details regarding potential income caps for these direct payments remain unclear, along with the amount of funding lawmakers should approve.
Key Proposals and Legislative Path
Trump’s health care framework, which he branded “The Great Health Care Plan,” includes a proposal to mandate that prescription drug companies offer the lowest prices globally, a strategy known as “most favored nation.” He asserted, “Instead of Americans paying the highest drug prices in the world, we will now be paying the lowest cost paid by any other nation.” This initiative aims to alleviate the financial burden on consumers following decades of high pharmaceutical prices.
Furthermore, Trump called for greater transparency in health care pricing, requiring insurance companies to disclose rates and profit margins in accessible language. “We will have maximum price transparency, and costs will come down incredibly,” he asserted. The proposal also includes stipulations for hospitals and insurers accepting Medicare or Medicaid to clearly post prices at their facilities, thereby facilitating informed consumer choices.
While a one-page outline of the proposal was made available on the White House website, it does not specify whether Trump intends for Congress to pursue these changes through budget reconciliation or bipartisan negotiations. A White House official indicated the administration believes the proposals garner broad public support, suggesting that bipartisan agreement could be achievable.
Addressing Drug Prices and Industry Engagement
During a call with reporters, Dr. Mehmet Oz, Administrator of the Centers for Medicare & Medicaid Services, emphasized the framework’s focus on four pillars: solidifying most favored nation drug pricing, lowering health insurance costs, enhancing transparency from insurance companies, and providing additional pricing information from health care providers. Oz expressed confidence that there is potential bipartisan support for various aspects of the proposal.
The administration’s approach aims to ensure that the drive for lower drug prices does not stifle innovation. Oz noted that establishing these policies as law would help maintain engagement from pharmaceutical companies in future administrations. Additionally, the framework seeks to empower the Food and Drug Administration to facilitate the transition of prescription drugs to over-the-counter availability, potentially increasing competition and driving down costs.
As discussions progress, the focus remains on creating a health care environment where costs are more manageable for consumers while ensuring that essential services and innovations are not compromised. The coming weeks will be critical in determining the fate of these proposals as Congress deliberates on how best to address the urgent issue of rising health care costs.
