THIS DAWN — Former U.S. President Donald Trump has announced a sweeping proposal to replace the Affordable Care Act (ACA), widely known as Obamacare, with a new system designed to give Americans direct cash assistance to purchase their own health insurance.
The proposal, unveiled at a press conference in Washington, D.C., marks Trump’s most detailed health care reform plan since his administration’s unsuccessful attempts to repeal Obamacare during his first term.
According to Trump, the plan — which he described as “Health Freedom America” — would eliminate many of the ACA’s federal subsidies and mandates.
Instead, it would provide direct monthly cash payments or “health freedom credits” to individuals and families, allowing them to purchase private health insurance or pay out-of-pocket for medical expenses.
“Our plan puts power back in the hands of the American people.
“Instead of bureaucrats in Washington deciding your health care, every American will receive cash to buy the plan they want, from the doctor they trust,” Trump said.
Under the proposed framework, adults earning below a certain income threshold would qualify for the full credit, while higher-income earners would receive partial support on a sliding scale.
Trump said the initiative would encourage competition among private insurers.
He also said it’ll reduce what he called “the artificial inflation of health care costs created by government interference.”
What becomes the fate of Obamacare?
While the proposal does not abolish all existing ACA provisions, it would dismantle key elements such as the Medicaid expansion and the federal health insurance marketplace.
President Trump also pledged that individuals with preexisting conditions would remain protected.
Critics, however, questioned how such guarantees would be enforced without Obamacare’s regulatory framework.
The announcement immediately reignited partisan debate over the future of American health care.
Republican lawmakers and conservative think tanks largely welcomed the proposal, describing it as a “market-based alternative” to government-controlled systems.
“This is the kind of innovation we’ve been waiting for.
“President Trump’s plan empowers people instead of punishing them for making their own choices,” said Senator Rick Scott (R-FL).
Democrats, however, swiftly condemned the proposal as a threat to millions who gained insurance under Obamacare.
White House Press Secretary Karine Jean-Pierre called the plan “a dangerous return to the days when families went bankrupt over medical bills”.
He added that “cash handouts won’t guarantee coverage or affordability.”
Mixed reactions
Health policy experts offered mixed reactions, some for Obamacare, other others indifferent.
Some noted that cash payments could give consumers more flexibility but warned that the plan could lead to higher premiums for older and sicker Americans if healthy individuals opt for cheaper, low coverage plans.
“Giving people money sounds simple, but health insurance markets are complex,” said Dr. Lena Whitaker, a senior fellow at the Brookings Institution.
“Without strong regulation and risk pooling, costs could rise for those who need coverage most,” Whitaker added.
Trump’s proposal forms a major plank of his 2025 campaign platform, alongside plans for immigration reform and tax cuts.
He said the full legislative text would be released “in the coming weeks” and urged Congress to “act quickly to restore health care freedom.”
The proposal, if implemented, would mark the most significant overhaul of U.S. health care since the ACA was enacted in 2010.
It will potentially shift federal health spending from insurance subsidies to direct consumer payments — a move that could redefine how Americans access and pay for medical care.
