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Trump Administration's New Healthcare Plans Could Slap Families With $31,000 Deductibles
"Nobody wants that product," said one healthcare expert of the Trump administration's proposed plans.
Feb 26, 2026
The Trump administration is proposing new regulations for healthcare plans purchased through Affordable Care Act exchanges that, on the surface, could offer patients lower monthly premiums.
However, the New York Times reported on Thursday that these plans would make up for the lower premiums by charging deductibles as high as $15,000 for individuals and $31,000 for families, meaning that people on these plans would have to pay significant up-front costs should they get sick before getting any benefit from having insurance.
For perspective, the Times noted that these deductibles would be "eight times the average for someone with job-based insurance."
Health experts who spoke with the Times were blunt about these plans' prospects for success.
"Nobody wants that product," Harvard health economist Amitabh Chandra said. "It’s going to be a really cheap product that nobody wants."
Dr. Joseph Betancourt, president of the Commonwealth Fund, told the Times that the plans being mulled by the administration would push greater assumption of risk onto patients and away from insurers.
"There's no doubt that we have an affordability crisis," he said. "As we move forward to shifting more of the burden to patients, there’s a chance to really exacerbate the crisis."
Katherine Hempstead, senior policy adviser for the Robert Wood Johnson Foundation, told the Times that the cheaper Trump plans are "normalizing hardship, and... normalizing catastrophe" by creating a form of health insurance that offers even less coverage than the cheapest plans available on the exchanges.
The high-deductible plans are being pushed by Medicare and Medicaid Administrator Mehmet Oz, who made headlines earlier this year by saying the goal of the Trump administration's healthcare policy was to have Americans be healthy enough so they could stay at work for at least an extra year before retiring.
"If we can get the average person... to work one more year in their whole lifetime, just stay in your workplace for one more year," Oz said during an interview on Fox Business, "that is worth about $3 trillion to the US GDP."
Democratic California Gov. Gavin Newsom, who is widely expected to seek the presidency in 2028, pounced on the report about the high-deductible plans.
"[Trump's] economic agenda is simple," Newsom wrote in a social media post, "force hard working families to pay more and give billionaires a tax break."
Johanna Maska, a former aide to President Barack Obama, expressed disbelief that this was Republicans' long-promised replacement plan for the ACA.
"A $31,000 deductible is unacceptable," she wrote. "This is the Republican long awaited plan? This is not healthcare that helps Americans."
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'Despicable': Vance, Oz Announce Freeze on Some Medicaid Funding for Minnesota
"The Constitution clearly gives Congress the power to spend taxpayer funds, and no law allows the president to halt if he feels some US states aren’t being 'good stewards' of the money," said one critic.
Feb 25, 2026
US Vice President JD Vance said Wednesday that the Trump administration will pause some Medicaid funding for Minnesota over fraud concerns—without offering any guarantees that the suspension will not adversely impact the more than 1 million Minnesotans who depend upon the key healthcare program.
"We're announcing today that we have decided to temporarily halt certain amounts of Medicaid funding that is going to the state of Minnesota in order to ensure that the state of Minnesota takes its obligations seriously to be good stewards of the American people's tax money," Vance said at a White House press conference with Centers for Medicare and Medicaid Services (CMS) Administrator Mehmet Oz.
"Now what is this gonna mean?" Vance continued. "What this means is that, first of all, the providers on the ground in Minnesota have actually already been paid... What we're doing is we are stopping the federal payments that will go to the state government until the state government takes it obligations seriously to stop the fraud that's being perpetrated."
They already targeted SNAP in Minnesota. They’ve killed two Minnesotans and injured or kidnapped hundreds more. Now they’re stealing their Medicaid. They’re going to deny people healthcare because of a YouTube video about a Somali daycare scam that wasn’t even true.
[image or embed]
— Kelly (@broadwaybabyto.bsky.social) February 25, 2026 at 3:05 PM
Oz demanded that Democratic Minnesota Gov. Tim Walz determine "who these providers are; make sure they're not already in trouble for doing bad stuff, and then reevaluate all the current providers to make sure they're supposed to be able to provide these services."
Responding to Oz's remarks, Gaia Leadership Project founder Elizabeth Cronise McLaughlin said on Bluesky, "So Minnesota is supposed to review every appointment by a Medicaid recipient with every doctor to get funds already lawfully allocated to the state?"
Asked by a reporter how he intends to ensure that the funding pause "doesn't impact the people who are enrolled in Medicaid," Vance said he is "worried about the justice of it all."
"I think it's offensive that American taxpayers pay into these programs and they're defrauded... and it's really sad that American children who need these services are unable to get them, because they're going to fraudsters," Vance replied.
"Look, we're certainly gonna make sure that our anti-fraud efforts go after the fraudsters and not after anybody who actually benefits from these services," he continued. "But I actually think the question is a little off, in a way, because the problem is not going after the fraud, the problem is that these programs are being defrauded to begin with."
"Our social safety net will disappear unless we take fraud more seriously," added the vice president, whose boss, President Donald Trump, last year signed into law the biggest cuts to Medicaid and the Supplemental Nutrition Assistance Program, or SNAP, in the nation's history as part of the One Big Beautiful Bill Act.
Medicaid is the primary healthcare safety net for lower-income Americans, with nearly 70 million people enrolled nationwide at the end of last year.
While federal prosecutors are investigating Minnesota’s Medicaid system—specifically, 14 high-risk service programs such as housing support and personal-care services—on suspicion of billions of dollars in fraudulent billings since 2018, and dozens of people have been convicted of stealing public money through the state’s social services system, critics noted that Congress, not the president, has the power of the purse.
Some observers noted that Trump has already targeted Minnesota—which voted against him all three times he ran for president—with his deadly crackdown on undocumented immigrants and their defenders and racist attacks on Somali immigrants, including Congresswoman Ilhan Omar (D-Minn.).
The Medicaid freeze follows the Trump administration's $10 billion cut in federal childcare funding to five Democrat-led states, including Minnesota, last month—a move that opponents argue punishes working families who committed no fraud.
University of Illinois professor Nicholas Grossman called the Medicaid pause "taxation without representation."
"The Constitution clearly gives Congress the power to spend taxpayer funds, and no law allows the president to halt if he feels some US states aren’t being 'good stewards' of the money," he said on Bluesky. "In case there’s any confusion on this, the Impoundment Control Act forbids it."
"The people of Minnesota vote for representatives to Congress," Grossman added. "Minnesota representatives and senators were in DC, representing their constituents, when Congress passed laws using proper procedure that allocated Medicaid funding. The president breaking those laws violates the fundamental compact of the republic."
Oz on Wednesday also announced "a six-month national moratorium blocking all new enrollments for durable medical equipment—prosthesis, orthotics—supplies across the board" in the name of fighting fraud. The move targets suppliers, not individual Medicaid beneficiaries.
This from Oz, a promoter of privatized Medicare Advantage programs, which are notorious for overcharging taxpayers and denying patients necessary care. The CMS under Oz increased federal funding for Medicare Advantage plans by more than $25 billion for 2026.
As Common Dreams recently reported, United Health Group (UHG), one of the country's largest for-profit health insurance companies, has been the leading beneficiary of a long-running Medicare Advantage fraud scheme that the Medicare Payment Advisory Commission—an independent, nonpartisan legislative branch agency—warned could cost US taxpayers $1.2 trillion over the next decade.
Some critics said that if Trump really cared about fraud, he'd go after companies like UHG—and stop pardoning so many convicted criminals who committed billions of dollars worth of fraud.
"These guys are despicable," Michigan State University professor Brendan Cantwell said Wednesday in response to Vance and Oz's announcement.
Robert Weissman, co-president of the consumer advocacy group Public Citizen, said in a statement Wednesday that “Medicaid fraud is a serious problem that requires cracking down on fraudsters—not patients."
Weissman continued:
This administration’s anti-fraud rhetoric is itself a fraud. In fact, the administration has gutted anti-fraud government agencies and programs and let fraudsters off the hook. It has issued record-breaking pardons to fraudsters; sought to eliminate the most important anti-consumer fraud agency, the Consumer Financial Protection Bureau; eviscerated the corps of inspectors general whose job is to root out waste, fraud, and abuses; and dropped dozens of fraud and fraud-related investigations against large corporations.
“The Trump administration suspension of Medicaid funding in Minnesota is a bad-faith, punitive, and shameful measure that will punish people in Minnesota as part of the same deceptive story that the Trump administration has told to justify the outrageous [Immigration and Customs Enforcement] invasion of the state," Weissman added.
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Dr. Oz: Goal of Trump Healthcare Plan Is to Get Americans to ‘Work One More Year' in Their Lifetime
"I'm sure everyone would be happy to work another year if work meant getting paid millions of dollars to spout utter nonsense," responded one critic.
Jan 21, 2026
Medicare and Medicaid Administrator Mehmet Oz on Wednesday said that one of the ultimate goals of President Donald Trump's healthcare plan is to get Americans healthy enough so that they're able to work for at least one more year during their lives.
During an interview on Fox Business to tout Trump's recently unveiled and widely derided healthcare plan, Oz explained why it was important for Americans to be healthy so that they could be productive workers and contribute to US gross domestic product (GDP).
"A lot of people watching this segment are thinking we're talking about healthcare expenses," he said. "This is about the value to the US economy if we can get this right. If we can get the average person watching... to work one more year in their whole lifetime, just stay in your workplace for one more year, that is worth about $3 trillion to the US GDP."
"Wow!" exclaimed Fox Business host Maria Bartiromo.
Dr. Oz: "If we can get the average person to work one more year in their whole lifetime -- just stay in your workplace for one more year -- that is worth about $3 trillion to the US GDP. That's the productivity we would unleash ... if you're sick, you can't work." pic.twitter.com/9xixeDm2ux
— Aaron Rupar (@atrupar) January 21, 2026
"That's the productivity we would unleash of people feeling they have agency over their future, like they've got stuff they want to accomplish with their lives," Oz continued. "If you're sick, you can't work. So keep people healthy, they'll want to work, they'll want to produce, not just for one year but for many more... It's worth the investment to get that return."
"I love it," replied Bartiromo.
Oz's statement about getting Americans to work longer to improve national GDP was met with immediate criticism.
Journalist Brian Goldstone, who last year published a book focusing on Americans who are homeless despite having jobs, argued that Oz was simply clueless about the realities of working-class Americans.
"I recently met a widowed 71-year-old woman still working two jobs and living at an extended-stay hotel because even two jobs don't pay her enough to afford rent," he wrote in a post on Bluesky. "This is what 'one more year of work' looks like in America."
Economist Dean Baker of the Center for Economic and Policy Research noted that Oz doesn't seem to understand that most Americans don't have the kinds of cushy gigs he's enjoyed for decades.
"I'm sure everyone would be happy to work another year if work meant getting paid millions of dollars to spout utter nonsense on Fox, CBS, and other right-wing outlets," Baker remarked on X.
Baker also questioned the arithmetic behind Oz's claim about the vast benefits to the US economy of having everyone work for an extra year.
"I'm also curious where the hell he got the $3 trillion (10% of GDP)," he wrote. "I gather it is a Trump number, came straight out of his rear end."
Democratic political strategist Dan Kanninen said that Oz came off as utterly tone deaf about Americans' lives, and sarcastically encouraged the Trump administration to "put Dr. Oz and his 'Matrix' vision of the future where we all batteries for capital on the airwaves as much as possible."
Dell Cameron, a senior writer at Wired, argued that Oz's remarks were a damning indictment of former talkshow host Oprah Winfrey, who regularly featured purported experts of dubious credibility, including Oz, Phil McGraw, and João Teixeira de Faria, a Brazilian "faith healer" and convicted rapist currently serving a lifetime prison sentence.
"Hard to pin down which of the medical hacks platformed by Oprah's network has gone on to do the most harm, which is saying a lot since one is a cult leader who raped hundreds of women," he mused. "Then again, [Oz] is one of the most influential quacks of all time."
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