Trump Proposes Direct-Payment Plan to Replace Obamacare

President Donald Trump proposed a plan to “terminate” Obamacare by redirecting federal health insurance subsidies directly to Americans. Announced via Truth Social, Trump argued that money “currently being sent to money-sucking insurance companies” should instead go to individuals to buy their own coverage. He suggested the move could address affordability issues while calling for the elimination of the Senate filibuster to pass legislation.

The plan comes amid the ongoing government shutdown, which has delayed benefits for millions, including SNAP recipients. Policy experts noted logistical and fiscal challenges, highlighting that the subsidies total roughly $138 billion—far below Trump’s “hundreds of billions” claim—and questioned how coverage could function without insurance companies administering plans.

Reactions were mixed: some conservatives praised the empowerment of individuals, while Democrats warned it could destabilize insurance markets and increase costs. The White House has not released a formal implementation plan.