President Trump has announced one-time $90 payments to help more than 20 million Medicare Part B enrollees cover premium costs, with the White House saying the money will arrive in October via direct deposit or check. The announcement, made late Friday on social media, comes just weeks before the Nov. 3 midterm elections and follows similar pre-election pledges, including $500 rebate checks for about 1 million people with Affordable Care Act premiums and a campaign promise of $5,000 for every American adult if Republicans keep Congress.
The payments will be drawn from the Medicare Improvement Fund, a fund established by Congress in 2008 to improve program operations and payments to providers. Larry Levitt, KFF's executive vice president for health policy, said the fund's language is broad and gives the administration substantial discretion, though previous administrations have not used it this way. Congress has periodically redirected money from the fund for other priorities, including $20.74 billion used to create the Affordable Care Act in 2010.
Eligibility is limited: seniors must live in the U.S., cannot already receive premium assistance from Medicaid, and cannot pay income-adjusted monthly premiums. Those enrolled in Medicare Advantage, the private-plan alternative used by more than half of eligible beneficiaries, are also excluded. The announcement arrives as polls show only 17% approval of Trump's handling of inflation, with the president continuing to argue that the economy is booming despite voter concerns about gasoline and grocery costs.