Former President Donald Trump introduced a comprehensive health-care proposal on January 15, 2026, calling on Congress to swiftly adopt 'The Great Healthcare Plan' as lawmakers debate the renewal of critical Affordable Care Act tax credits set to expire in March.
- Trump's 'Great Healthcare Plan' proposes $1.2 trillion in federal spending reductions over 10 years
- The plan includes a $15,000 annual HSA contribution limit and eliminates the individual mandate penalty
- Interstate insurance market access and state-level Medicaid block grants are central features
- Approximately 14 million Americans currently benefit from ACA tax credits set to expire in March 2026
- Projected loss of coverage for 8 million individuals if subsidies are not extended
- S&P 500 healthcare sector declined 0.7% following the announcement
Former President Donald Trump formally launched 'The Great Healthcare Plan' on January 15, 2026, urging Congress to approve the initiative without delay as it confronts a looming deadline to extend $250 billion in annual premium tax credits under the Affordable Care Act. The proposal, unveiled during a press event in Palm Beach, Florida, outlines a multi-phase strategy to replace the ACA with a market-driven system featuring expanded health savings accounts (HSAs) and interstate insurance competition. Trump emphasized that the plan would reduce federal spending by $1.2 trillion over a decade while expanding coverage to an estimated 20 million uninsured Americans by 2031. The centerpiece of the plan includes a $15,000 annual HSA contribution limit—more than double the current cap—and the elimination of the individual mandate penalty. States would be permitted to opt out of federal regulations on insurance plans and offer cross-border coverage, allowing residents to purchase policies from other states with no restrictions. The plan also proposes redirecting $180 billion in federal funds from Medicaid expansion to block grants focused on preventive care and rural health infrastructure. Market participants reacted cautiously. The S&P 500 healthcare sector dipped 0.7% in early trading, with insurers such as UnitedHealth Group (UNH) and Humana (HUM) seeing modest declines. Health tech stocks, including Teladoc Health (TDOC), experienced volatility, reflecting investor uncertainty over regulatory shifts. Analysts noted that the plan’s success hinges on congressional approval, particularly from moderate Republicans and Democrats who remain wary of coverage gaps. The Senate Finance Committee is expected to hold a markup session on the proposal by February 5. The timing of the announcement coincides with the expiration of the 2023 Inflation Reduction Act’s enhanced ACA subsidies, which currently lower premiums for approximately 14 million Americans. Without renewal, estimates suggest nearly 8 million individuals could lose coverage or face premium hikes exceeding 40%.