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Trump Outlines Health Care Plan to Cut Costs

Published 15 January 2026

President Donald Trump announced the outlines of a new health care plan on Thursday, urging Congress to consider legislation aimed at addressing rising costs and insurance premiums following the expiration of key subsidies for Affordable Care Act enrollees.

The proposal comes amid growing pressure on Republicans to act after enhanced tax credits, which reduced insurance costs for most ACA participants, lapsed at the end of 2025. Democrats had previously triggered a 43-day government shutdown in an effort to prevent the subsidies' expiration. Trump's plan seeks to lower drug prices by linking them to the lowest rates paid in other countries, a policy the White House described as formalizing ongoing efforts. At its core, the initiative would provide direct payments to Americans for health savings accounts, allowing individuals to purchase insurance independently without relying on federal intermediaries.

"The government is going to pay the money directly to you," Trump said in a taped video released by the White House. "It goes to you and then you take the money and buy your own health care." The concept echoes a proposal discussed by Republican senators the previous year, though...

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