Trump unveils healthcare plan shifting subsidies to direct health savings account payments

President Donald Trump announced a plan to replace Affordable Care Act insurance subsidies with direct payments into health savings accounts, and the White House says the plan would lower drug prices and make costs more transparent.

President Donald Trump announced a healthcare plan that would replace government insurance subsidies under the Affordable Care Act with direct payments into health savings accounts. The White House says the plan would lower drug prices, lower insurance premiums and make costs more transparent. The administration did not provide an implementation timeline and Congress is described as deeply divided over major healthcare legislation. Key details: - The plan would replace ACA subsidies with direct deposits into health savings accounts, according to the White House. - The administration says the plan would codify most-favored-nation drug price deals and make more medicines available for over-the-counter purchase. - Officials said insurance companies and pharmacy benefit managers would face new transparency requirements, including publishing profit margins, claim denial rates and pricing information. - No timeline was provided; a senior White House official said the administration expects bipartisan support but Congress remains divided and next steps are undetermined at this time. Summary: The proposal represents a shift from routing subsidies through insurers to sending funds directly to consumers via health savings accounts, and it includes measures aimed at drug pricing and insurer transparency. Undetermined at this time.