Trump’s $90 Medicare rebate is rolling out, but millions aren’t eligible. Critics see it as a political stunt

WASHINGTON — President Donald Trump said his administration will make one-time payments of $90 per person to help more than 20 million Medicare enrollees pay their Part B premiums. It will cost about $2 billion.

Less than a third of all Medicare beneficiaries are eligible for the payments, which are expected to be sent out this week. Not eligible are approximately 35 million Medicare Advantage enrollees, millions of other people with disabilities, and low-income Medicare beneficiaries.

The Republican president’s election-year promise this weekend comes as the Nov. 3 midterm elections fast approach, with the cost of living and health care costs among the top issues for voters.

Some questions and answers about payments:

Who will benefit?

Some 20.8 million people with original Medicare Part B who live in the United States do not receive Medicaid premium assistance or pay an income-adjusted monthly amount.

Medicare Advantage enrollees, who make up more than half of Medicare’s 64.2 million eligible beneficiaries, will not receive any payments, according to KFF, a nonprofit health care research organization. The 12 million low-income seniors and disabled people who receive premium assistance will also not receive this assistance.

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The Part B program covers expenses such as doctor visits, ambulance services and laboratory tests. Total monthly costs generally start at around $200 and vary depending on income.

Allison Schuster, a White House spokeswoman, said in a statement that the administration is “empowering Americans to take control of their health by putting money directly into the hands of Medicare patients.”

When will payments be made and how will they be disbursed?

According to the Centers for Medicare & Medicaid Services website, eligible beneficiaries will receive a $90 rebate this month, with most receiving a direct deposit on or around Friday. Others will receive a paper check from the Treasury Department later in October.

Juliette Cubanski, KFF’s program director on Medicare policy, said payment would be automatic.

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“When it comes to benefits, people don’t need to call or sign up – it’s just money they receive directly, but not all Medicare beneficiaries will receive this money.”

A White House fact sheet says people can call 1-800-MEDICARE (1-800-633-4227) to check their eligibility for the premium reduction. To check payment status, people should call the Social Security Administration at 1-800-772-1213.

What is the source of the money?

The payments will come from the Medicare Improvement Fund created by Congress in 2008 to make improvements to Medicare’s fee-for-service program.

The fund was created to improve program management and oversee contracts and subcontractors, according to the Congressional Budget Office, but its focus broadened after various legislative changes.

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This is not the first time this fund has been used.

Democratic President Barack Obama’s administration, along with Congress, redirected $20 billion to expand health care coverage through the Affordable Care Act.

But under Trump, this is the first time the fund has been used to pay beneficiaries directly.

What do critics say about the plan?

Critics of Trump’s promise call the $90 payments a pre-election stunt intended to sway voters rather than address structural problems with health care costs and administration.

The top Democrat on the Senate Finance Committee, Oregon Sen. Ron Wyden, said in a statement that “this is yet another desperate attempt by a failed president to escape Americans’ revulsion at his failed agenda, which amounts to a Trump-inflated gas tank.”

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Trump recently promised $500 rebate checks to about 1 million Obamacare enrollees in 30 states who the White House said had been overcharged by the Biden administration for certain fees.

Cubanski said the Medicare rebates were being distributed at a time when Americans were feeling the impact of rising prices for food, energy and gas. Rising health care costs only add to that pressure, she said.

“It might be helpful to people, but it might not go very far.”