Key Points
- President Trump plans to meet with insurance executives to demand lower premiums.
- Expiring Obamacare subsidies could double insurance costs for 20 million people.
- Major insurance stocks such as UnitedHealth and Humana fell following the announcement.
- Insurance groups claim that high medical costs, not profit, drive price hikes.
President Donald Trump announced on Friday that he plans to bring insurance company executives to the table in the coming weeks. His goal is simple: to help them lower costs for millions of Americans. This move comes as a deadline looms. Federal subsidies for Obamacare are set to expire at the end of the year, which could send monthly premiums skyrocketing for families nationwide.
“I’m going to call a meeting of the insurance companies,” Trump told reporters at the White House. He stated his goal clearly: to see whether they can “get their price down.”
Trump suggested the meeting could happen as early as next week at his Mar-a-Lago estate or during the first week of January in Washington. He mentioned that the idea came to him during a separate event where pharmaceutical leaders pledged to donate drugs to avoid new tariffs.
The stock market reacted instantly to the news. Shares of major health insurers, including UnitedHealth Group, Cigna, and Humana, dropped sharply after the President’s remarks. Investors clearly worry that government pressure could eat into corporate profits.
However, the insurance industry is already defending its pricing. AHIP, a group representing these companies, issued a statement explaining that premiums simply reflect the rising costs of actual medical care. They argued that health plans are already doing everything possible to protect consumers from expensive hospital visits and doctor fees. They also pointed out that the government already regulates their profit margins.
Trump still prefers a system that gives Americans direct subsidies to help pay for insurance. However, he believes a new deal with the companies could save the current health care exchanges from collapsing. Without action, more than 20 million people will likely see their premiums double in 2026.
Since Congress failed to extend the subsidies before leaving for the holidays, lawmakers will have less than two weeks to fix the problem when they return in January. Trump is now stepping in to see if he can solve the crisis through direct negotiation.
