Trump Great Healthcare Plan 2026: Shifting Subsidies to Direct Cash

Direct payments over government subsidies. President Donald Trump's new healthcare gamble could reshape the American insurance market. On Jan 15, 2026, the White House unveiled 'The Great Healthcare Plan,' a framework designed to dismantle the current Obamacare subsidy model in favor of health savings accounts (HSA). It's a move that's already sent ripples through Wall Street, pitting insurers against pharmaceutical giants.

Trump Great Healthcare Plan 2026: Markets React to Direct Payment Shift

The core of the proposal involves replacing federal insurance subsidies with direct payments to consumers. According to Reuters, this framework aims to reduce premiums by more than 10% by fostering price transparency and competition. Following the announcement, insurance stocks surged. UnitedHealthcare rose 0.8%, while Humana jumped 3.5% as investors bet on the new HSA-driven landscape.

Conversely, the pharmaceutical sector took a hit. The plan's emphasis on codifying 'most-favored-nation' drug pricing led to a 3.7% drop for Eli Lilly and a 1.9% slide for AbbVie. The administration is also pushing to make more medicines available over-the-counter, potentially cutting into prescription-based revenues.

The Battle Over Obamacare Subsidies and Rising Premiums

Timing is critical as millions of Americans face a massive spike in healthcare costs. Data from KFF shows average premiums are set to skyrocket from $888 in 2025 to $1,904 in 2026. While the White House press secretary Karoline Leavitt promised lower costs for every American, Democrats argue the plan disproportionately benefits the wealthy. Mehmet Oz, Administrator for CMS, emphasized that money should go to people, not insurance companies, but a deeply divided Congress makes a quick legislative victory unlikely.