President Donald Trump announced on social media that more than 20 million seniors will receive $90 each to help pay for Medicare premiums. This announcement was made late Friday night, just ahead of the Nov. 3 midterm elections. Last month, Trump stated that approximately 1 million individuals would receive rebate checks of $500 for Affordable Care Act premiums. He has also pledged to send every American adult $5,000 if Republicans maintain control of the House and Senate in the upcoming elections. This promise would require congressional approval and could exceed $1 trillion, potentially increasing the deficit and inflation.
At a rally in Vandalia, Ohio, Trump emphasized his $5,000 pledge and mentioned that 70,000 families in Ohio would receive the ACA rebates shortly. He also referenced $1,776 payments to military members announced in December, suggesting they could have been better timed.
Polls indicate that many Americans attribute the rising costs of gasoline and groceries to Trump, with only 17% approving of his handling of inflation. Despite this, Trump has claimed that the economy is thriving.
The White House stated that the $90 payments for seniors will be funded by the Medicare Improvement Fund, which was established by Congress in 2008 for program operations and healthcare provider payments. Medicare Part B enrollees are expected to receive the one-time payment in October via direct deposit or check. Monthly costs for Medicare start around $200 and vary based on income.
Eligibility for the payment requires seniors to reside in the U.S. and not be receiving premium assistance from Medicaid or paying adjusted premiums based on income, according to the Centers for Medicare and Medicaid Services. Seniors enrolled in Medicare Advantage, a private alternative to traditional Medicare, are not eligible for this payment. More than half of eligible Medicare beneficiaries are enrolled in Medicare Advantage, according to the healthcare research nonprofit KFF.
Larry Levitt, KFF’s executive vice president for health policy, noted that previous administrations have not utilized the Medicare Improvement Fund in this manner, although Congress has occasionally allocated funds from it for other priorities, such as the Affordable Care Act in 2010. Levitt stated that the language surrounding the Medicare Improvement Fund is broad and provides significant discretion to the administration.