Private health insurance penetration rates in the US increase with household income, a GlobalData survey has found. Meanwhile, President Trump has submitted a healthcare legislative proposal to Congress aimed at lowering prescription drug prices and insurance premiums.
GlobalData’s 2025 Financial Services Consumer Survey shows that private health insurance penetration rates rise sharply with household income. Just 19.4% of respondents earning $0–$19,999 a year reported having private health insurance, compared with 50.9% of those earning $150,000 or more, highlighting affordability as a key barrier to uptake among lower-income groups.
Against this backdrop, President Donald Trump has submitted a healthcare legislative proposal to Congress that he says is aimed at reducing costs for consumers and improving access to coverage. The proposal, known as the ‘Great Healthcare Plan,’ focuses on lowering prescription drug pricesby aligning US pricing more closely with international benchmarks and expanding price transparency across the healthcare system, according to a White House fact sheet.
A central insurance-related element of the plan is a proposed overhaul of federal subsidies. Rather than directing subsidies to insurers, the proposal would channel funds directly to eligible individuals, allowing consumers to choose their own health plans. The administration argues this approach would increase competition among insurers, lower average premiums for commonly selected plans by more than 10%, and reduce overall taxpayer spending by at least $36bn.
The proposal also seeks to reduce costs by targeting intermediaries, calling for the elimination of certain payments involving pharmacy benefit managers and brokers, which it describes as inflating the final price of coverage. In parallel, new disclosure requirements would require insurers to publish policy prices, benefits, claims denial rates, and administrative cost breakdowns in “plain English,” with similar transparency obligations extended to Medicare and Medicaid providers.
If implemented, these measures could improve affordability and accessibility for lower-income households, potentially narrowing the income-related coverage gap identified by GlobalData and supporting higher private health insurance penetration rates. For insurers, the reforms would increase price competition and transparency, potentially reshaping product design and pricing strategies as the market shifts toward greater consumer choice and cost sensitivity.
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By GlobalData
