President Donald Trump announced late Friday that more than 20 million seniors would receive $90 payments to assist with Medicare premium costs. The announcement comes ahead of the Nov. 3 midterm elections and represents the latest in a series of payment pledges made to voters during the campaign season.
The senior payment follows Trump’s previous announcement of $500 rebate checks to approximately 1 million individuals for Affordable Care Act premiums. The president has also promised to distribute $5,000 to every American adult if Republicans maintain control of both the House and Senate in the upcoming midterm elections. Economists have suggested that such a pledge would require congressional approval and could cost more than $1 trillion, potentially increasing the deficit and inflation pressures.
According to White House officials, the $90 payments for seniors will be drawn from the Medicare Improvement Fund, which Congress established in 2008 as a flexible funding mechanism for program improvements and health care provider payments. Medicare Part B enrollees are expected to receive the one-time payment in October through either direct deposit or check. Eligibility requirements include current U.S. residency and no concurrent receipt of Medicaid premium assistance or adjusted monthly premiums based on income. Beneficiaries enrolled in Medicare Advantage plans, which cover more than half of eligible Medicare beneficiaries according to healthcare research organization KFF, are not eligible for the payment.
Healthcare policy experts noted that previous administrations have not utilized the Medicare Improvement Fund for direct payments to beneficiaries in this manner, though Congress has previously withdrawn funds for other legislative priorities. Larry Levitt, executive vice president for health policy at KFF, indicated that the fund’s language provides substantial administrative discretion. For comparison, $20.74 billion was withdrawn from the fund to support Affordable Care Act implementation in 2010.
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