White House readies $90 payments to offset Medicare premiums

President Donald Trump has announced that the federal government will provide one-time $90 payments to more than 20 million Medicare beneficiaries to help offset the cost of Medicare Part B premiums. The payments are expected to be distributed in early October.

Beneficiaries who receive Medicare payments by direct deposit generally will receive the $90 electronically, while those without direct deposit will receive checks at the mailing addresses on file with Medicare, according to the White House.

The administration stated the payments will be drawn from the Medicare Improvement Fund, a $2 billion fund established by Congress to support improvements to Medicare’s fee-for-service program. The White House described the action as the first time the fund has been used to make direct payments to Medicare beneficiaries.

Most people enrolled in Medicare Part B will qualify, according to the administration. People whose Part B premiums are paid by Medicaid and beneficiaries who pay an Income-Related Monthly Adjustment Amount will not be eligible.

“President Trump is delivering on his promises to lower costs for American patients by putting them first and taking on the special interests that have used the status quo in Washington to raise healthcare costs for Americans,” the White House stated.

Beneficiaries can contact Medicare at 1-800-633-4227 to determine whether they qualify. Those seeking information about the status of their payment should contact the Social Security Administration at 1-800-772-1213.

The White House characterized the payments as part of Trump’s broader effort to reduce health care costs and redirect federal health care resources toward patients. It also criticized previous congressional actions involving the Medicare Improvement Fund, including the Affordable Care Act, which it said redirected $20.7 billion from the fund.

The administration is also pursuing measures aimed at reducing health care fraud, increasing price transparency and lowering prescription drug costs. Among these efforts, Trump signed an executive order in February 2025 directing federal agencies to expand access to health care pricing information. The Centers for Medicare & Medicaid Services subsequently increased enforcement of hospital price-transparency requirements, the White House said.

On Sept. 10, Trump announced what the administration called the Working Families Obamacare Refund, a plan to provide $500 payments to nearly 1 million people whom the White House says were overcharged for health insurance coverage during the Biden administration. Trump has also urged Congress to approve what the White House calls the Great Healthcare Plan, which the administration says would reduce prescription drug costs and insurance premiums, increase price transparency and impose greater accountability on health insurers.

Earlier this year, a bipartisan commission was proposed by members of Congress to study long-term reform options for Social Security and Medicare, which face trust fund depletion in the 2030s. The panel would develop policy recommendations for lawmakers to approve, revise or reject, mirroring the Greenspan Commission model. Supporters say it could break political gridlock; skeptics call it a delay tactic.