Trump is proposing a plan to overhaul Medicare, the U.S. government’s health insurance program for the elderly, by dramatically reducing what is known as deductibles and co-pays.
The plan, which Trump has described as the most comprehensive in the history of the nation, is set to be unveiled Thursday, according to an administration official.
It will be the first major overhaul of Medicare since the 1990s.
Trump, who is scheduled to address the American people Thursday night, has not said exactly how much he will cut out of Medicare.
The proposal would eliminate the popular Medicare Advantage plan, a popular subsidy for older Americans that many rely on to pay for health care and other necessities.
The current Medicare Advantage plans are offered through Medicare Advantage Partners, a nonprofit health insurance company that was started in 2002.
Trump said Thursday that he was cutting out the “expensive and unnecessary” Medicare Advantage program.
Under the plan, Medicare Advantage would be merged with the traditional Medicare program, which is offered through the Federal Employees Health Benefits Program, the official said.
The Trump administration has been touting its proposal to reform Medicare and Medicaid for decades, saying the programs need to be reformed in a way that ensures they are for people with disabilities and low-income people.
The Affordable Care Act, commonly known as Obamacare, is the law passed by Congress in 2010 that created the federal health insurance exchanges and provided the federal government with tax credits for individuals and families to buy health insurance.
The nonpartisan Congressional Budget Office estimated that if the ACA were to be repealed, it would result in 22 million people losing their health insurance by 2026.