US President Donald Trump has unveiled plans to replace Obamacare by giving Americans cash to buy their own health insurance.
Trump said that money being spent on subsidies for the Affordable Care Act (ACA) should instead be sent directly to consumers.
“I am recommending to Senate Republicans that the Hundreds of Billions of Dollars currently being sent to money sucking Insurance Companies to save the bad Healthcare provided by ObamaCare, be sent directly to the people so that they can purchase their own, much better, and have money left over,” Trump said in a post on his Truth Social.
Trump Proposes Cash Payments to Replace Obamacare Subsidies
Trump didn’t provide any additional details; however, Senator Rick Scott, a Republican from Florida, stated in a post on X that he’s “writing the bill right now.”
In a Monday night interview with FOX News, Trump hinted at a potential replacement for the Affordable Care Act, which could carry his own name.
“That would be so exciting. Call it Trumpcare. Call it whatever you want…Anything but Obamacare!” He said.
“I said it’s going to be a disaster. And I was exactly right. The premiums have gone up like rocket ships. And I’m not just talking about recently. I’m talking about for years they’ve been going up.”
Meanwhile, Senator Bill Cassidy, a Republican from Louisiana, has previously proposed redirecting Affordable Care Act subsidies into pre-funded federal flexible spending accounts.
These accounts would need to be used within a fixed period and could cover healthcare expenses, such as deductibles or co-pays.
Cassidy said the talks are still in the early stages, but he hopes Democrats will engage in good faith.
“This is the sort of American patient-consumer-looking piece of policy that we should be able to agree to on a bipartisan basis,” he told reporters Monday.
Currently, ACA beneficiaries who qualify for premium subsidies don’t personally receive the funds.
They are instead sent directly to insurers to offset people’s monthly premiums. In 2025, over 90% of ACA enrollees qualify for enhanced subsidies.
Democrats Warn Cash Plan Could Undermine ACA Marketplaces
Republicans have decried the subsidy system as enriching insurers, with some supporting the direct allocation of funds to Americans to give them more control over their health insurance decisions.
However, critics say it could severely undermine the ACA marketplaces.
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In a post on X, Senator Chris Murphy, a Democrat from Connecticut, called Trump’s post “unsurprisingly nonsensical.”
“Is he suggesting eliminating health insurance and giving people a few thousand dollars instead? And then when they get a cancer diagnosis, they just go bankrupt?” He posed.
“We are not going to come up with that deal during open enrollment. Right now, the only option is to extend the subsidies for a year.”
Trump’s appeal to Senate Republicans came as Democratic lawmakers are digging in on their attempt to force the GOP to the negotiating table on extending the enhanced ACA subsidies that are due to expire at the end of this year.
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