by I.Edwards
With the end of federal health insurance subsidies, President Donald Trump has floated a new plan aimed at changing how Americans pay for insurance and medical care.
At the center of the proposal? A proposal to send money directly to americans through health savings accounts.
“The government is going to pay the money directly to you,” Trump said in a prerecorded video released by the White House. “It goes to you and than you take the money and buy your own health care.”
Democrats have pushed back on the idea, saying the accounts would not replace the tax credits that helped lower monthly premiums for many Americans under Obamacare.
Trump’s proposal also calls for lowering drug prices and requiring insurance companies to be more open about costs, denied claims and wait times for care.
For years, Trump has faced criticism for not offering a full option to the Affordable Care Act (ACA), President Barack Obama’s signature legislation. During Trump’s first term,efforts to repeal and replace the law failed.
While campaigning in 2024, trump said he had only “concepts of a plan.” His new proposal still lacks many details.
Dr. Mehmet Oz, who leads the Centers for Medicare and medicaid Services, described it as a framework lawmakers could build on
Trump’s Healthcare Plan: A 2026 Update
As of January 21, 2026, former President Donald Trump continues to advocate for a healthcare system centered on market-based reforms and repealing the Affordable Care Act (ACA). His plan, initially outlined during his 2016 campaign and refined in subsequent statements, focuses on increasing competition among insurers and empowering states to manage their own healthcare programs.
Key Components of the plan
- Repeal and Replace the ACA: Trump consistently calls for the full repeal of the ACA, enacted in 2010.He proposes replacing it with alternative solutions focused on lowering costs and increasing access.
- Health savings Accounts (HSAs): Expanding the use of HSAs is a central tenet. Trump advocates for increasing contribution limits and allowing HSAs to be used for a wider range of healthcare expenses. The 2024 HSA contribution limits were $4,150 for individuals and $8,300 for families, according to the IRS.IRS Proclamation
- State-Level Control: The plan emphasizes granting states greater flexibility in designing and implementing their own healthcare programs, potentially through block grants or waivers.
- Price Clarity: Trump has repeatedly called for greater price transparency in healthcare, requiring hospitals and insurers to disclose prices for procedures and services. Executive Order 13959, issued in 2020, aimed to achieve this, but its full implementation remains debated.
- Allowing drug Imports: The plan supports allowing the importation of prescription drugs from countries where they are sold at lower prices.
Recent Developments (2024-2026)
Throughout 2024 and 2025, Trump continued to criticize the ACA during campaign rallies and public appearances. He reiterated his commitment to finding a replacement plan, though specific details beyond the core principles remained limited. In December 2025, Trump released a policy paper outlining his vision for healthcare, available on his campaign website. White House Facts
The Congressional Budget Office (CBO) estimated in a 2022 report that repealing the ACA without a extensive replacement could result in 24 million Americans losing health insurance coverage. CBO Report
As of January 21, 2026, no specific legislative proposals mirroring Trump’s plan have gained meaningful traction in Congress.
