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President Donald Trump called on Congress to pass what his administration is calling the “Great Healthcare Plan,” a broad legislative proposal aimed at lowering prescription drug prices, reducing health insurance premiums, expanding price transparency, and imposing new disclosure requirements on insurance companies.
The White House said the proposal is intended to build on actions Trump has taken since returning to office, as well as healthcare policies from his first term. Administration officials described the plan as a comprehensive attempt to curb healthcare spending while increasing consumer choice and accountability across the healthcare system.
“President Trump is delivering on his promise to lower healthcare costs for all Americans,” the White House said in a statement, arguing the plan would return pricing power to patients and reduce the role of what it characterized as industry middlemen.
A major pillar of the proposal focuses on prescription drug pricing. The administration said the plan would codify “most-favored-nation” pricing policies, which seek to link what Americans pay for certain medications to the lower prices paid in other developed countries. Trump pursued similar policies during his first term, including executive actions targeting insulin and other high-cost drugs.
Under the new proposal, the administration said previously negotiated voluntary pricing agreements between pharmaceutical companies and the Department of Health and Human Services would remain in place. The plan also calls for expanding the number of pharmaceutical products deemed safe for over-the-counter sale, a move the White House said would increase competition, improve access, and reduce the need for physician visits for routine medications.
In addition to drug prices, the proposal targets health insurance premiums. The administration said it would seek to end certain taxpayer-funded subsidy payments to insurance companies and redirect those funds directly to eligible Americans to help them purchase coverage of their choice. The White House argued this approach would reduce premiums while increasing consumer control over insurance decisions.
The plan also includes funding for a cost-sharing reduction program for health plans. According to the administration, the Congressional Budget Office has estimated that such a program could save taxpayers at least $36 billion and reduce premiums for some Affordable Care Act benchmark plans by more than 10%.
Another provision would address the role of pharmacy benefit managers, known as PBMs, which negotiate drug prices on behalf of insurers and employers. The administration said the proposal would seek to eliminate what it described as kickbacks paid by PBMs to brokerage intermediaries, arguing those payments contribute to higher insurance premiums. The healthcare industry has long been divided over the role of PBMs, which insurers and employers say help control drug costs, while critics argue their practices lack transparency and inflate prices.
The proposal also seeks to impose new disclosure and reporting requirements on insurance companies. Under what the administration calls a “Plain English” insurance standard, insurers would be required to post simplified explanations of coverage and rate comparisons on their websites, avoiding technical or industry-specific language. Companies would also be required to disclose the percentage of revenue spent on patient claims compared with administrative costs and profits.
In addition, insurers would be required to publish the percentage of claims they deny and the average wait times for routine care. The White House said these measures are intended to make it easier for consumers to compare plans and to hold insurers accountable for how premiums are used and how care decisions are made.
The plan also emphasizes expanded price transparency across the healthcare system. It would require any healthcare provider or insurer that accepts Medicare or Medicaid to prominently post pricing information and fees at their place of business and online. The proposal would also strengthen enforcement mechanisms to ensure compliance.
During his first term, Trump issued regulations requiring hospitals and insurance companies to disclose pricing information in various formats. The White House said the current proposal would build on those rules and criticized the Biden administration for what it called a lack of enforcement, arguing patients continued to struggle to access clear, usable price data.
Since returning to the office, Trump has signed executive orders aimed at strengthening price transparency and lowering drug costs. One order, signed May 12, 2025, directed federal agencies to pursue international drug pricing benchmarks. The administration said it has since reached 16 agreements with pharmaceutical manufacturers to align U.S. prices on certain medications with those paid in other developed countries.
Another executive order focused on expanding public access to healthcare pricing information and ramping up enforcement against hospitals not complying with existing transparency rules. The Centers for Medicare and Medicaid Services has since finalized updates to hospital transparency regulations and proposed new requirements for insurance companies, according to the White House.
The administration also pointed to Trump’s Working Families Tax Cuts law, which it said expanded access to health savings accounts, increased federal efforts to combat healthcare fraud and abuse, and boosted investment in rural healthcare systems.
While the White House is urging swift congressional action, the proposal faces an uncertain path on Capitol Hill. Healthcare legislation has historically drawn intense debate, with lawmakers divided over the federal government’s role in regulating prices, restructuring subsidies, and imposing new mandates on insurers and providers. The pharmaceutical, insurance, and hospital industries are also expected to closely scrutinize the proposal, which could significantly alter pricing structures and reporting requirements.
