Trump announces $90 payments for seniors on Medicare
Trump promises $90 payments to seniors on Medicare before midterm elections to cover premiums
President Donald Trump is promising more payments to voters just before the Nov. 3 midterm elections — this time, to more than 20 million seniors, giving them $90 each to help pay Medicare premiums.
The announcement, made Friday evening by Trump on social media, comes after the president said last month that about a million people would receive $500 rebate checks for Affordable Care Act premiums. He also promised on the campaign trail to send $5,000 to every American adult if Republicans retained control of the House and Senate in the midterm elections.
That commitment — which would require congressional approval — would likely cost more than $1 trillion, widening the deficit and worsening inflation.
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Polls show Americans increasingly blame Trump for the high cost of gasoline and groceries, with only 17% approving of his handling of inflation. Trump sought to dismiss concerns about affordability, saying the economy was booming.
Where does the money come from?
The White House said the $90 payments for seniors would come from the Medicare Improvement Fund, created by Congress in 2008 as flexible funding to improve program operations and payments to health care providers.
Who is entitled to payment and when should they expect it?
Medicare Part B enrollees can expect to receive a one-time payment in October, either by direct deposit or check, the White House said. The total monthly cost of the program — which covers expenses such as doctor visits, ambulance services and lab tests — starts at around $200 and varies based on income.
To be eligible, seniors must live in the United States and not already receive Medicaid premium assistance or pay income-adjusted monthly premiums, according to the Centers for Medicare and Medicaid Services. Seniors enrolled in Medicare Advantage, a private alternative plan to traditional Medicare coverage, are not eligible for payment. More than half of eligible Medicare beneficiaries have Medicare Advantage, according to KFF, a nonprofit health care research organization.
Has the fund been used in this way in the past?
Previous administrations have not used the Medicare Improvement Fund in this way, although Congress has periodically withdrawn money from the fund to finance other priorities, said Larry Levitt, KFF executive vice president for health policy. For example, $20.74 billion was used to create the Affordable Care Act in 2010.
“The Medicare Improvement Fund language is quite broad and gives significant discretion to the administration,” Levitt said.
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