Fatima Hussein, Associated Press
WASHINGTON (AP) — President Donald Trump announced that his administration will distribute one-time payments of $90 per person to assist over 20 million Medicare enrollees with their Part B premiums, at an estimated cost of $2 billion.
However, less than one-third of all Medicare recipients will qualify for these payments, which are expected to be issued this week. Approximately 35 million Medicare Advantage enrollees, along with millions of individuals with disabilities and low-income Medicare recipients, will not be eligible.
The announcement comes as the November 3 midterm elections approach, with healthcare costs and the cost of living being significant concerns for voters.
Eligibility for the payments includes approximately 20.8 million individuals in the original Medicare Part B who are not receiving premium assistance from Medicaid or paying an income-related monthly adjusted amount. According to the Kaiser Family Foundation (KFF), Medicare Advantage enrollees, who represent over half of the 64.2 million Medicare beneficiaries, will not receive a payment, nor will 12 million low-income older adults and people with disabilities who receive premium assistance.
The Part B program covers expenses such as doctor's visits, ambulance services, and lab tests, with total monthly costs generally starting at about $200 and varying based on income.
Allison Schuster, a White House spokeswoman, stated that the administration is "enabling Americans to take control of their health by putting money directly back in the hands of Medicare patients."
According to the Centers for Medicare & Medicaid Services, eligible beneficiaries will receive one $90 rebate this month, with most payments being made via direct deposit on or around Friday, while others will receive a paper check from the Treasury Department later in October.
Juliette Cubanski, director of KFF's program on Medicare policy, noted that the payment will be automatic, meaning recipients do not need to call or sign up to receive it, although not all Medicare recipients will qualify.
A White House fact sheet indicates that individuals can call 1-800-MEDICARE (1-800-633-4227) to check their eligibility for the premium rebate and the Social Security Administration at 1-800-772-1213 to check on payment status.
The payments will be funded by the Medicare Improvement Fund, which was established by Congress in 2008 to enhance the Medicare fee-for-service program. The fund's purpose has evolved due to various legislative changes.
This marks the first instance under the Trump administration that the fund has been utilized to directly pay recipients, although it has been redirected previously, such as during the Obama administration when $20 billion was allocated to expand healthcare coverage through the Affordable Care Act.
Critics have described the $90 payments as a pre-election maneuver aimed at influencing voters rather than addressing systemic issues in healthcare costs and administration. Oregon Senator Ron Wyden, the top Democrat on the Senate Finance Committee, stated, "this is another desperate attempt by a failed president to escape Americans' revulsion with his failed agenda, amounting to one tank of Trump-inflated gas."
Cubanski remarked that the timing of the Medicare rebate payments coincides with rising food, energy, and gas prices, compounding the financial pressures on Americans. She added, "This might be helpful for people but it might not go very far."