As of January 2026, President Trump has proposed "The Great Healthcare Plan," a legislative framework aiming to reduce costs through direct-to-consumer subsidies, significant drug pricing reforms, enhanced price transparency, and restricting pharmacy benefit manager (PBM) practices. The plan seeks to replace insurer-based subsidies with direct payments, enforce "most-favored-nation" drug pricing to lower costs, and expand over-the-counter medication access.
Key components of the 2026 plan include:
Direct-to-Consumer Subsidies: Shifting federal funds directly to individuals for purchasing insurance, rather than to insurers.
Drug Price Reduction: Implementing a "most-favored-nation" model, aiming to match US drug prices with the lowest price paid in other nations, with claims of potential 300%–500% reductions for some drugs.
PBM Reform: Ending "kickbacks" paid by pharmacy benefit managers to middlemen to reduce insurance premiums.
Price Transparency: Requiring providers and insurers in Medicare/Medicaid to "plainly" post prices, coverage, and denial rates for consumers.
Over-the-Counter Access: Accelerating the availability of more prescription drugs as over-the-counter options.
The plan aims to reduce common ACA plan premiums by over 10%. While some elements, such as funding cost-sharing reductions, are projected to save taxpayers $36 billion over a decade, analysts note that separating healthier individuals from the ACA exchange could potentially raise costs for sicker, remaining enrollees. The proposal also includes the creation of a TrumpRx.gov website for direct prescription sales.
As
of January 2026, President Trump has unveiled a framework titled "The
Great Healthcare Plan" aimed at reducing costs through drug pricing
reform, insurance transparency, and direct consumer subsidies.
His plan to lower healthcare costs includes:
1. Prescription Drug Reforms
Most-Favored-Nation (MFN) Pricing: The plan calls for Congress to codify "Most-Favored-Nation" deals, which benchmark U.S. drug prices to the lowest prices paid by peer nations.
TrumpRx: A direct-to-consumer platform (launched via TrumpRx.gov) that offers discounted cash prices for certain medications.
Over-the-Counter (OTC) Expansion: Moving more prescription drugs (such as certain gastric ulcer and high-dose NSAID medications) to OTC status to increase competition and reduce doctor visit costs.
2. Insurance & Premium Adjustments
Direct Subsidies: Replacing standard government payments to insurance companies with direct federal subsidies to consumers, potentially through Health Savings Accounts (HSAs), allowing individuals to purchase the plan of their choice.
Funding Cost-Sharing Reductions (CSRs): Reinstating federal funding for CSRs, which help low-income enrollees with out-of-pocket costs. This is intended to lower silver-level plan premiums by an estimated 10%.
PBM Reform: Ending "kickbacks" paid by pharmacy benefit managers (PBMs) to brokerage middlemen to reduce hidden costs in the insurance market.
3. Price Transparency & Accountability
"Plain English" Standards: Requiring insurers to publish rate and coverage comparisons in simple language rather than industry jargon.
Financial Transparency: Mandating that insurance companies publicly post their overhead costs, profits, and the percentage of claims they reject.
Public Pricing: Any provider or insurer accepting Medicare or Medicaid must prominently post their pricing and fees at their place of business to help patients shop for care.
4. Expanded Plan Eligibility
Catastrophic Plan Expansion: In 2026, eligibility for lower-premium Catastrophic plans has been expanded via hardship exemptions to include those who do not qualify for other Marketplace savings due to income.
HSA Integration: As of 2026, more Marketplace plans, including all Bronze and Catastrophic plans, are compatible with Health Savings Accounts.
These resources explain President Trump's proposed framework for reducing healthcare costs in 2026, covering aspects like drug pricing, insurance subsidies, and transparency mandates.
https://www.google.com/search?q=what+is+trump%27s+plan+to+lower+healthcare+costs+2026+google
Comments
Treatment of serious illnesses has advanced and cost reductions are underway. This includes preventive measures to reduce morbidity through weight control. It also includes implementation of higher productivity strategies by doctors and hospitals.
Norb Leahy, Dunwoody GA Tea Party Leader
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