President Donald Trump has announced a one-time $90 payment for more than 20 million senior citizens enrolled in Medicare Part B, with the money intended to help offset the cost of Medicare premiums. The payments are scheduled to be distributed in October, just weeks before the November 3 midterm elections.

The announcement comes as Americans continue to deal with higher household expenses, including healthcare, food and other essential costs. The Trump administration says the payment is designed to put money directly into the hands of eligible Medicare beneficiaries and help reduce the financial burden associated with healthcare premiums.

Who is eligible for the $90 Medicare payment?

According to the Centers for Medicare & Medicaid Services, approximately 20.8 million Americans enrolled in Original Medicare Part B qualify for the payment. Eligible beneficiaries must live in the United States and cannot already be receiving premium assistance through Medicaid or paying an Income-Related Monthly Adjustment Amount. People enrolled in Medicare Advantage are also excluded from the rebate.

Most eligible seniors are expected to receive the money automatically. Those who have direct deposit information on file will generally receive the $90 electronically, while beneficiaries without direct deposit will receive a paper check at their registered mailing address. CMS says most direct deposits are expected around October 8, with paper checks arriving later in the month.

Where is the money coming from?

The administration says the payments are being funded through the Medicare Improvement Fund, which was established by Congress in 2008 to support improvements to Medicare’s fee-for-service program.

The White House says the fund was allocated billions of dollars but had not previously been used to make direct payments of this kind to Medicare beneficiaries. Trump has argued that using the fund for the $90 rebate will help make healthcare more affordable for seniors.

Why are the payments being announced before the midterm elections?

The timing of the announcement has attracted political attention. The payments are being made only weeks before the November midterm elections, when voters will decide control of Congress.

Trump’s administration has also announced other financial measures in recent weeks, including $500 refunds for nearly one million Affordable Care Act enrollees. Trump has separately promoted a proposed $5,000 payment for American adults if Republicans retain control of Congress, although that proposal would require congressional approval.

The $90 Medicare payment, however, is being presented by the administration as a healthcare premium rebate rather than a new stimulus program.

For eligible seniors, the payment could provide some short-term relief as they manage monthly Medicare costs. Beneficiaries who want to verify their eligibility can contact Medicare or the Social Security Administration for information about their payment status.