US President Donald Trump has presented a legislative healthcare proposal to Congress, aiming to reduce prescription drug costs and insurance premiums.

Dubbed the Great Healthcare Plan, the proposal outlines measures for the US to adopt pricing approaches similar to those used in other countries for prescription medicines.

The intention is to “maximise price transparency”, as outlined in a fact sheet issued by the White House.

The plan proposes codification of previously introduced Most-Favored-Nation arrangements that, during Trump’s presidency, were intended to align US drug costs with those abroad.

Trump said: “My plan would reduce your insurance premiums by stopping government payoffs to big insurance companies and sending that money directly to the people.

“To further reduce insurance premiums, my plan ends the giant kickbacks to insurance brokers and corporate middleman that only drive up the costs,” he added.

According to the plan, recent voluntary agreements with health agencies would remain in effect under new legislation.

The plan would also expand over-the-counter availability for more pharmaceutical drugs that are considered safe, a move aimed at reducing overall healthcare costs and increasing consumer choice.

This is expected to strengthen price transparency, foster competition and reduce the burden of unnecessary doctor visits.

In terms of health insurance reforms, the plan suggests halting direct federal subsidy payments to large insurance companies.

Instead, those funds would be redirected to individuals who qualify, enabling them to select insurance coverage independently.

The document references estimates that this change could reduce average premiums under commonly chosen plans by more than 10% and save at least $36bn in taxpayer expenditures.

Part of the plan is focused on curbing intermediary costs by eliminating payments made by pharmacy benefit managers (PBMs) to brokers, practices the proposal claims inflate the final price of insurance coverage.

To increase accountability among insurers, the plan introduces a requirement for clear online disclosure of policy rates and benefits in “very plain English”.

Insurers would also be obligated to report what share of their revenue is distributed towards claim payments compared with administrative costs and profits.

Additional disclosures would include the proportion of claims denied and average waiting periods for routine care.

The plan also calls for greater transparency from both health insurers and providers participating in Medicare or Medicaid.

All such parties would need to display their prices and fees within their offices or facilities.