President Donald J. Trump talks about his healthcare vision and signs executive order in Charlotte NCÂ United States on September 24, 2020.
Peter Zay | Anadolu Agency | Getty Images
In a speech unveiling his health-care “vision” for America, President Donald Trump made a surprise announcement: that cash cards will soon be sent to millions of seniors using the government health insurance program Medicare.
“Under my plan, 33 million Medicare beneficiaries will soon receive a card in the mail containing $200 that they can use to help pay for prescription drugs,” Trump said in North Carolina on Thursday evening.
But it’s unclear how exactly the administration will pay for the cards. A White House official told CNBC in an email that the money for the cash cards would be paid for by “a Medicare 402 demo” and that the costs would be “offset from Most Favored Nation savings.”
The official did not immediately respond to a request for further details about the 402 demo or how it would supply the funds. Medicare waivers under Section 402 apply to experimental ways to cover costs and provide services.
“These will be actual discount cards for prescription drug copays” and will be