The Trump White House is expected to unveil a healthcare policy framework that would lower costs and extend expiring Obamacare subsidies according to reports.

MSNBC and Politico reported that the healthcare policy framework would include a two-year extension of the expiring enhanced premium tax credits. These are also called enhanced Obamacare subsidies which would otherwise expire at the end of the year. The proposal could be unveiled as early as Monday.

A White House declined to confirm the details of the alleged plan to Politico.

“Until President Trump makes an announcement himself, any reporting about the administration’s healthcare positions is mere speculation.”

The plan would lower limits on income eligibility for the credits and set minimum premium payments according to the reports. The proposed eligibility cap would set the subsidies to 700 percent of the federal poverty line. Republicans have complained that with the current Obamacare enhanced subsidy scheme, wealthy Americans would benefit from the subsidies in what was meant to be a temporary coronavirus-era benefit.

The White House plan would also urge Congress to fund cost-sharing reduction plans. Republicans pushed for these in the Big Beautiful Bill but were nixed after Senate Democrats objected to its inclusion in Trump’s landmark legislation. Democrats believed it violated rules on budgetary reconciliation.

The Congressional Budget Office found that these healthcare reforms would have lowered healthcare premiums by 12.7 percent. The changes would have reduced costs by decreasing the need for Obamacare enhanced premium tax credits. Cost-sharing reduction plans would have lowered costs by 30.8 billion dollars.

The Trump proposal would also have part of their tax credit go straight to Americans via tax-advantaged savings accounts. This differs from the current system where money goes to a health insurance company to lower Americans’ premiums indirectly.

White House deputy chief of staff James Blair spoke about the president’s ambitions for healthcare reform last week.

“The president probably would like to go bigger than the Hill has the appetite for, so we’ll have to see how that, you know, works out.”

The framework represents Trump’s attempt to address healthcare costs without completely dismantling Obamacare as he promised during his first term. The president has shifted to a reform approach rather than outright repeal.

By capping subsidies at 700 percent of the federal poverty line, the administration aims to prevent wealthy families from receiving government assistance intended for lower-income Americans. Current rules allow households making much more money to qualify for help paying premiums.

Setting minimum premium payments ensures that even subsidized individuals have some skin in the game rather than receiving completely free coverage. This creates an incentive to use healthcare resources more carefully.

The two-year extension gives Congress time to develop a more permanent solution without letting millions of Americans suddenly lose their subsidies at year’s end. However, some conservatives may object to extending what was supposed to be temporary pandemic relief.

Cost-sharing reduction plans help lower out-of-pocket expenses like deductibles and copays for people with insurance. When Democrats blocked these provisions from the Big Beautiful Bill, they prevented reforms that would have saved billions of dollars.

The Congressional Budget Office analysis showing 12.7 percent lower premiums provides ammunition for Trump to argue his approach would actually make coverage more affordable for average Americans. That number gives credibility to the administration’s reform efforts.

Sending tax credits directly to Americans through savings accounts rather than insurance companies represents a fundamental philosophical shift. It puts consumers in control of their healthcare dollars instead of letting insurers act as middlemen.

Blair’s comment about Trump wanting to go bigger than Congress will allow suggests the president may be constrained by political realities. Even with Republican control of both chambers, passing major healthcare legislation requires navigating complex budget rules and party divisions.

The timing of the announcement matters politically as well. Unveiling a healthcare framework now allows Trump to shape the debate before Democrats can define his position for him. It also gives Republicans something positive to campaign on rather than just criticizing Obamacare.

Whether this framework can actually pass Congress remains uncertain. Healthcare reform has bedeviled every president who has attempted it for decades. Trump’s success will depend on finding enough votes from Republicans who want to go further and moderates who fear going too far.