President Donald Trump rolled out the Great Healthcare Plan and urged Congress to act on sweeping healthcare reforms. The proposal aims to slash drug prices, cut insurance premiums, and force real transparency across the healthcare system. The White House announced the plan on January 15, 2026.
Lowering prescription drug prices nationwide
The Great Healthcare Plan centers on reducing prescription drug costs for all Americans. It builds on actions taken during President Trump’s first term and early months of his second term.
Key drug pricing measures include:
- Codifying “Most-Favored-Nation” pricing to match lower international drug prices
- Grandfathering existing voluntary pricing deals with HHS and Centers for Medicare and Medicaid Services
- Expanding access to verified safe drugs for over-the-counter purchase
The administration says these changes will increase competition and reduce the need for costly doctor visits.
Lowering insurance premiums for families
The plan also aims to reduce health insurance premiums by redirecting federal spending.
Major insurance changes include:
- Ending extra taxpayer-funded subsidy payments to large insurers
- Sending funds directly to eligible Americans to purchase coverage
- Funding a cost-sharing reduction program projected to save taxpayers at least $36 billion
- Cutting premiums on common Obamacare plans by more than 10%, according to the Congressional Budget Office
The proposal also eliminates pharmacy benefit manager kickbacks that the administration says raise premiums.
Holding insurance companies accountable
A central feature of the Great Healthcare Plan is the creation of a “Plain English” insurance standard. The goal is to simplify insurance information and make it easier for consumers to compare plans.
Insurance companies would be required to publish:
- Clear rate and coverage comparisons upfront
- The percentage of premiums paid to claims versus profits
- The percentage of claims denied
- Average wait times for routine care
The administration argues this would end what it calls deliberate complexity in insurance marketing.
Maximizing healthcare price transparency
The plan expands existing price transparency rules for providers and insurers that accept Medicare or Medicaid.
Under the proposal:
- Providers must post prices and fees prominently at their facilities
- Insurers must clearly disclose costs before services are delivered
- Noncompliance would face stricter enforcement
The White House says previous transparency rules were not fully enforced under the Biden administration.
Building on recent executive actions
The Great Healthcare Plan builds on several executive orders signed since President Trump returned to office.
Recent actions include:
- A May 12, 2025 executive order aligning U.S. drug prices with those of other developed nations
- Sixteen negotiated drug pricing deals with major pharmaceutical companies
- Expanded enforcement of hospital and insurance price transparency rules
- Expanded access to health savings accounts for millions of Americans
The administration says these steps laid the groundwork for broader legislative reform.
What happens next
Congress will now decide whether to advance the Great Healthcare Plan into law. If enacted, the proposal would mark one of the largest healthcare overhauls in years, with direct impacts on drug prices, insurance premiums, and consumer transparency.
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