Trump Proposes Direct-Payment Plan to Replace Obamacare
President Donald Trump on Saturday proposed a plan to “terminate” Obamacare by redirecting federal insurance subsidies directly to Americans. Announced via Truth Social, Trump called for the funds “currently being sent to money-sucking insurance companies” to go instead to individuals so they could “purchase their own, much better, healthcare.” “I am recommending to Senate Republicans that the hundreds of billions of dollars currently being sent to money-sucking insurance companies … BE SENT DIRECTLY TO THE PEOPLE,” Trump wrote, linking the proposal to his broader populist agenda of cutting out intermediaries. He also tied the plan to his push to end the filibuster.
The announcement comes amid the ongoing government shutdown, which has delayed air travel and disrupted SNAP food benefits for 42 million Americans. Trump has urged Senate Republicans to bypass the filibuster and pass spending legislation without Democratic support, suggesting that direct subsidy payments could help address health affordability issues Democrats have highlighted. While the proposal echoes Trump’s repeated theme of empowering individuals, critics noted significant challenges. Trump overstated the subsidies, claiming “hundreds of billions” go to insurers when the Congressional Budget Office estimates 2025 payments at about $138 billion. Experts also questioned how Americans would purchase coverage without insurance companies, which currently manage ACA plans.
Reactions were mixed. Some conservatives praised the focus on individual choice, while others warned dismantling the ACA without a replacement could destabilize the insurance market. Democrats dismissed the plan as a rehash of failed repeal attempts from Trump’s first term. The White House has not released details on implementation, costs, or alternatives for existing coverage. Nevertheless, Trump’s message was clear: end the filibuster, resolve the shutdown, and terminate Obamacare. The proposal highlights the ongoing debate over health care policy and underscores the divisions it continues to create among lawmakers and voters.
