What Is the 'Great Healthcare Plan'? How Trump Aims to Lower Your Out-of-Pocket Costs — and What's Still Unclear

Healthcare impacts people most when it starts to erode their savings. It becomes even more critical when someone falls ill and cannot afford treatment. For many Americans, rising medical costs feel like a constant burden. Donald Trump claims his new 'Great Healthcare Plan' will ease that financial strain. However, critics argue it could exacerbate the problem.

After months of hints and years of promises, Trump has released a framework for healthcare reform. He previously described it as merely an idea. Now, it has a name and is making headlines. Yet, many key details remain absent.

A Long Wait for a Big Promise

The brief document, titled the 'Great Healthcare Plan', outlines four main objectives but offers few specifics on how they would be implemented. These include reducing prescription drug costs, lowering premiums for health insurance policies, requiring insurers to disclose their profit margins and costs of coverage, and enabling patients to see pricing clearly before receiving treatment.

Trump stated that the plan aims to prioritise consumers and reduce out-of-pocket healthcare costs, although the framework does not specify how these savings would be achieved.

He urged Congress to pass this legislation swiftly so that Americans can experience immediate financial relief. However, health policy experts caution that the framework lacks the necessary detail to determine whether it would provide meaningful or prompt relief.

What the Plan Says It Will Do

The central theme of the framework is its focus on lowering drug prices. President Trump wants pharmaceutical companies to charge the same low prices for drugs in the US as they do abroad. He also seeks health insurance companies to report their claim and administrative costs, and hospitals to provide accurate estimates of what patients will pay for services before treatment.

One of the more contentious proposals involves shifting federal subsidies away from insurers and directly assisting individuals. Under this plan, government aid would go straight to patients rather than to insurance companies. The intention is to enable consumers to choose the best insurance policy for their needs. However, experts warn that such a shift could cause significant disruption to the current health insurance system.

The Political Firestorm Behind the Plan

Healthcare has become a deeply divisive issue for Republicans. Millions of Americans are facing higher insurance premiums after Congress failed to extend subsidies under the Affordable Care Act. An estimated 22 million people have been affected.

Some Republicans have even broken ranks to support restoring the tax credits introduced during the Biden administration. Trump, however, has suggested he might veto such proposals.

Interestingly, the Great Healthcare Plan does not explicitly mention Obamacare. It does not promise to repeal the law but subtly distances itself from the subsidies that underpin it.

This lack of clarity has raised concerns among healthcare experts.

Why Experts Are Deeply Concerned

Health policy specialists believe that the vagueness within the plan could ultimately result in a less effective product for consumers.

For example, experts warn that directing subsidies directly to individuals rather than insurers could destabilise the Affordable Care Act marketplaces. Removing the necessary support that keeps most consumers insured could reduce competition among insurers, potentially leading to higher premiums.

There are also concerns that low-income individuals might receive reduced subsidies, making coverage unaffordable for many. This could result in millions of low-income Americans losing access to insurance altogether. Some analysts warn of a 'death spiral' — where healthier individuals opt for cheaper, limited plans, and those with pre-existing conditions are forced into more expensive options.