Trump Administration Says Health Insurance Move Will Save $12 Billion [View all]

Source: Newsweek

Published Jun 23, 2025 at 10:42 AM EDT


The Centers for Medicare & Medicaid Services (CMS) has announced it is in the final stages of implementing a new rule that it says will "lower individual health insurance premiums" by 5 percent on average. CMS said the move is expected to save American taxpayers up to $12 billion in 2026, by "combating the surge of improper enrollments in the Affordable Care Act (ACA) Exchanges."

Concern has been raised by some that these new measures will push many Americans off their health coverage. "They will indeed save government money, but only by throwing off the ACA rolls millions of individuals who deserve to be on," Jonathan Gruber, a professor of economics at Massachusetts Institute of Technology, told Newsweek. Newsweek has contacted CMS via email for comment.

Why It Matters

According to a CMS release, the new rules are being brought in to tackle "waste, fraud and abuse" in health insurance markets—an issue that is at the forefront of the Trump administration's policies. A Government Accountability Office (GAO) report from 2024 found that $100 billion was discovered in "improper payments" in 2023 across the Medicare and Medicaid programs.

While wasteful spending in health insurance markets has been targeted by the administration to lower the tax burden for Americans, critics are concerned that sweeping cuts and changes will only push many off health coverage, subsequently driving up costs in the long-term.

Read more: https://www.newsweek.com/health-insurance-change-save-taxpayers-12-billion-2089223