President Donald Trump released a healthcare plan on Thursday that calls for delivering government assistance directly to consumers rather than through insurance companies and for lowering prescription drug prices. The announcement, which the administration dubbed "The Great Healthcare Plan," represents what the White House described as a comprehensive effort to address rising healthcare costs across the country.

The proposal, released on the final day of Affordable Care Act open enrollment and two weeks after pandemic-era premium tax credits expired, is largely a framework that compiles ideas Trump has floated publicly with few new details on implementation. The White House left the specifics to Congress to flesh out, according to the Washington Times.

"Instead of putting the needs of big corporations and special interests first, our plan finally puts you first and puts more money in your pocket," Trump said in a video announcing the plan. "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 healthcare."

Drug Pricing and Direct Consumer Payments

At the center of Trump's proposal is a call for Congress to codify his administration's "Most Favored Nation" drug pricing policy, which allows the Department of Health and Human Services to negotiate with pharmaceutical companies to match the lowest prescription prices available in developed nations worldwide.

Since August, the Trump administration has announced more than a dozen successful negotiations with pharmaceutical companies to voluntarily lower prices for medications, including GLP-1 weight-loss and diabetes drugs and fertility medications, according to the Washington Examiner. "We believe by codifying it, we'll make sure that these drug companies stay engaged for future administrations," said Dr. Mehmet Oz, administrator of the Centers for Medicare and Medicaid Services.

The plan also includes provisions to make more medications available over the counter without a prescription through a new website called TrumpRx.gov. Oz indicated options being considered include anti-inflammatory drugs and peptic ulcer products like omeprazole. The FDA would provide approval for any drug moved to over-the-counter status.

On insurance subsidies, the proposal calls for redirecting funds from Obamacare to Health Savings Accounts, allowing consumers to purchase health insurance plans of their choice. The plan did not specify whether the plans would need to meet ACA rules, including covering preexisting conditions, though the White House stated the plan would not affect people with preexisting conditions.

Insurance Industry Transparency Measures

A significant portion of the framework targets transparency within the insurance industry. The plan would require health insurance companies to publish rate and coverage comparisons in "plain English" and disclose detailed information about claim payouts versus profits on their websites.

Additionally, insurers would be required to publish the percentage of claims they reject and average wait times for routine care. Healthcare providers who accept Medicare or Medicaid would also be required to prominently post their pricing and fees in their offices for patients to see.

"As the saying goes, sunlight is the best disinfectant," Trump stated in his video announcement. The administration argues that increased transparency will enable patients to shop more effectively for healthcare services and drive competition that could push costs down.

The plan also targets pharmacy benefit managers, the intermediaries between pharmaceutical and insurance companies. A bipartisan bill on PBM reform nearly passed in 2024 and has been a central point of agreement in recent healthcare reform discussions in Congress, according to the Washington Examiner.

Mixed Reception on Capitol Hill

Congressional reaction to Trump's framework has been mixed. Senate Majority Leader John Thune of South Dakota said he had only seen "the high level" of the plan but called the transparency provisions "no-brainers." Speaker Mike Johnson praised the plan but did not indicate when the House would take it up.

"We are thankful for President Trump's determination to lower health care costs, and House Republicans are anxious to continue working closely with the White House every day to deliver real results for the American people," Johnson said in a statement to the New York Post.

Senator Angus King of Maine, an independent who caucuses with Democrats, expressed concerns that the plan does not address the immediate expiration of enhanced Obamacare subsidies. "His plan may be something that's considered as a long-term proposal, but unless it deals with the extension of the subsidies, then that leaves the crisis that is still facing us," King said to the Washington Times.

The plan notably does not include renewing the enhanced Obamacare premium tax credits that expired at the end of 2025. A bipartisan group of senators has been negotiating a potential extension with changes including an income cap and fraud guardrails, though those talks have reportedly stalled.

Political Implications Ahead of Midterms

The announcement comes ten months before November's midterm elections, amid Republican concerns about being blamed for rising Obamacare health insurance premiums. On average, premium costs will increase to $1,904 in 2026 from $888 in 2025, according to health policy firm KFF, a far greater jump than the savings outlined in Trump's plan.

White House press secretary Karoline Leavitt said the plan would save taxpayers at least $36 billion and reduce the most common Obamacare plan premiums by over 10 percent through funding the Cost Sharing Reduction program. Administration officials estimated people would save between 10 percent and 15 percent on health care premiums under the proposal.

Senior administration officials expressed optimism that the plan would receive congressional approval this year, noting the administration had been working with Capitol Hill on the details. "We've gotten good reception on the Hill, and we look forward to working with our Hill allies, and think that many, pretty much, this entire package can be bipartisan and get bipartisan support," a senior administration official said.