For most recipients, the money will arrive through direct deposit. Beneficiaries who do not have direct deposit information on file will instead receive a paper check mailed to the address Medicare has on record.
The administration says more than 20 million Americans are expected to qualify.
Trump Taps a Medicare Fund That Had Gone Unused
The money is being drawn from the Medicare Improvement Fund, an account established by Congress in 2008 to support improvements to Medicare’s fee-for-service program.
According to the White House, approximately $2 billion had been placed in the fund, but previous administrations never used it to provide direct payments to Medicare beneficiaries.
Trump is taking a dramatically different approach.
Rather than allowing the money to continue sitting in Washington, his administration is using the fund to provide immediate financial relief to seniors facing Medicare Part B expenses.
The White House also pointed to the fund’s history in congressional budget maneuvering, arguing that lawmakers previously treated the account as a convenient source of money for other legislative priorities.
The administration specifically highlighted $20.7 billion that it says was previously pulled from the fund in connection with the Affordable Care Act.
Trump blasted the arrangement in his announcement and accused Democrats of allowing Washington insiders and special interests to benefit while ordinary seniors saw healthcare expenses climb.
Trump wrote on Truth Social:
“I am pleased to announce that my Administration will, immediately, begin sending “Checks” of nearly $100 to over 20 MILLION wonderful Seniors to help pay for their Medicare Part B premiums, which we have already reduced by significant amounts.
“This money will come from the Medicare Improvement Fund, a pointless “Slush Fund” that has only been used by Dumocrats in Congress to pay for the Waste, Fraud, and Abuse for their Special Interest friends, and drive up Healthcare costs. We are finally using this Fund, along with my Most Favored Nations Deals, to substantially LOWER costs for our Seniors.
“I pledged to protect and preserve Medicare and Social Security, which were on the verge of RUIN by Joe Biden, who foolishly and maliciously let tens of millions of Illegal Aliens into our Country, and we are doing just that for America’s Seniors.
“This is separate from the equally substantial Refund “Checks” we are sending to One Million Americans who were overcharged for their Unaffordable Care Act plans by Joe Biden.
“Because I delivered on this very important issue for the American People, they can also rest assured the highly popular $5,000 Trump Dividend will be distributed to every U.S. Citizen if, and when, the Republicans win the Midterm Elections! Thank you for your attention to this matter.”
More Than 20 Million Medicare Beneficiaries Could Get Paid
The White House says the vast majority of Medicare Part B beneficiaries are eligible for the $90 payment, although there are some important exceptions.
Seniors whose Part B premiums are already covered through Medicaid will not receive the payment. Beneficiaries who are subject to the Income-Related Monthly Adjustment Amount, which applies to certain higher-income Medicare recipients, are also excluded.
For everyone else who qualifies, the process is designed to be straightforward.
Those already receiving federal benefits through direct deposit should see the payment deposited automatically. Others should receive their money through the mail without having to navigate a new application process.
That could put cash into the hands of millions of seniors within days.
Separate $500 Refunds Are Already Moving
Trump also emphasized that the Medicare payments are separate from another refund effort his administration has announced.
Nearly one million Americans across 30 states are slated to receive $500 “Working Families Obamacare Refund” payments after being overcharged for Affordable Care Act health insurance plans.
Those payments were also expected to begin going out in October.
Trump’s announcement therefore puts two different healthcare-related payments in motion: the $90 Medicare payment targeting more than 20 million Part B beneficiaries and the $500 refunds aimed at roughly one million Americans affected by Obamacare overcharges.
But Trump used the announcement to point toward an even larger proposal.
Trump Revives His $5,000 Dividend Promise
The president closed his message by returning to his proposed $5,000 “Trump Dividend,” which he said would be distributed to every U.S. citizen if Republicans prevail in the November midterm elections.
That promise raises the political stakes considerably with control of Congress on the line.
Trump has increasingly framed the midterms as a choice between returning money and power to American households or allowing Washington’s political establishment to regain control of the agenda.
For seniors, however, the most immediate development is much simpler.
More than 20 million Medicare beneficiaries could soon see an unexpected $90 payment arrive in their bank accounts or mailboxes — funded with money the administration says had been sitting in Washington for years.
And Trump is making sure voters know exactly who decided to finally put it to use.
