President Trump announced Friday that his administration will distribute roughly $2 billion in one-time payments to more than 20 million Medicare beneficiaries to help offset Medicare Part B premium costs.
In a post on Truth Social that evening, Trump said the funds would come from the Medicare Improvement Fund, which he described as a “pointless ‘Slush Fund.'”
The payments are expected to be about $90 per beneficiary. The administration framed the move as a way to provide relief for seniors who pay monthly Part B premiums for outpatient services and doctor visits.
Administration officials said the action would not change statutory premium-setting mechanisms but would be a one-time transfer to beneficiaries. The decision follows broader Republican criticism of Medicare spending and calls to redirect unspent or surplus funds within Medicare accounts.
Democrats and senior advocates have questioned whether the payments are sufficient and whether tapping the Medicare Improvement Fund sets a precedent for future use of reserve balances intended for program stability.
The announcement comes amid ongoing debates in Washington over health care funding, Medicare solvency, and how best to provide cost relief to older Americans on fixed incomes.
Source: thehill.com
