The White House announced plans to send $90 direct payments to more than 20 million older Americans, with President Donald Trump linking the move to his push to lower health care costs.
The payments would be drawn from approximately $2 billion held in the Medicare Improvement Fund, money set aside to improve Medicare’s hospital and medical insurance programs that has gone unused for its intended purpose since the fund’s creation in 2008.
Both Republican and Democratic administrations have tapped the Medicare Improvement Fund in congressional budget maneuvers over the years, making Friday’s announcement a notable shift in how the money is being deployed.
“We are finally using this Fund, along with my Most Favored Nations Deals, to substantially LOWER costs for our Seniors,” Trump wrote on Truth Social, also referencing his initiative to bring down U.S. drug prices.
Most Medicare Part B enrollees will receive a $90 direct deposit this month, the White House said, while others will receive a physical check mailed to the address on file with Medicare.
Not all of the roughly 64 million elderly Medicare enrollees will qualify for the payment, with low-income seniors who also qualify for Medicaid and higher-income enrollees who pay larger Part B premiums both excluded from the program.
Larry Levitt, executive vice president for health policy at KFF, a nonpartisan research group, noted that the roughly half of Medicare enrollees in Medicare Advantage plans, which are run by private insurers, also appear not to qualify.
Medicare Part B covers doctors’ visits, outpatient hospital services, medical equipment, and drugs administered by physicians, with the standard monthly premium currently sitting at $202.90, adding to financial pressures seniors already face from rising food and utility costs.
The administration said eligible recipients can contact 1-800-MEDICARE for eligibility questions, while those checking on payment status can reach the Social Security Administration at 1-800-772-1213.
Trump’s senior payment plan follows his separately announced initiative to send $500 Affordable Care Act refund checks to nearly 1 million people across 30 states, with those checks beginning distribution this week alongside a letter highlighting his record.
Trump also reiterated his promise of a $5,000 “dividend” for American citizens, writing that Americans “can also rest assured the highly popular $5,000 Trump Dividend will be distributed to every U.S. Citizen if, and when, the Republicans win the Midterm Elections!”
The Committee for a Responsible Federal Budget estimates that a $5,000 dividend would cost $1.2 trillion, a deficit increase it describes as “far more than all three COVID-era stimulus payments combined.”
Democrats have characterized the payments as a political stunt and raised questions about the legality of redirecting government funds to send direct payments to Americans ahead of November’s midterm elections.
Polling shows just 17% of Americans approve of Trump’s handling of inflation, with voters increasingly holding him responsible for elevated costs at the gas pump and grocery store, a political reality the administration has sought to downplay.
