Trump pushed major change to Medicare after $5 million donation to MAGA, Inc: report

Back in April, President Donald Trump paused the rollout of a Biden-era rule that sought to tamper down “abusive (Medicare) pricing practices” from private companies, and on Thursday, new records indicate that Trump’s own MAGA Inc. received a $5 million donation from one such company that stood to lose out on billions of dollars in earnings, The New York Times reported.

That company is Extremity Care, a biotech company that has been paid billions of dollars from Medicare for its skin substitute products, or organic bandages designed to mimic natural skin. Its owner, Oliver Burckhardt, was invited to a private dinner hosted by Trump for major donors at his Mar-a-Lago resort in Florida, where he got the chance to speak one-on-one with the president.

Trump would go on to post an image of a flier given to him by Burckhardt the following day on social media, and ultimately made good on Burckhardt’s investment by delaying the rollout of the Biden-era policy that would have ended a loophole in Medicare rules, specifically as it relates to payouts for skin substitute products.

“It was the culmination of an expensive influence campaign by Extremity Care that underscored Mr. Trump’s willingness to grant access and preferential treatment to people and companies that fill the coffers of his political groups,” The New York Times wrote.

“The February donation by Mr. Burckhardt’s company, which was revealed in a report filed late last week with the Federal Election Commission, was among dozens of seven- and eight-figure contributions to MAGA Inc. from donors, many of whom were rewarded with presidential face time to plead for their causes.”

Medicare payouts for skin substitutes have exploded in recent years, rising from $256 million in 2021 to $10 billion in 2024. In a July report, the Centers for Medicare and Medicaid Services condemned what it described as “abusive pricing practices,” and recounted one notable example.

“This dramatic spending increase is largely attributed to abusive pricing practices in the sector, including the use of products with limited evidence of clinical value,” the report read.

“In one notable case, the CMS Fraud Defense Operations Center stopped more than $1 million in improper payments for skin substitutes to a medical group practice. The practice was submitting Medicare claims for wound care services allegedly performed by the owner, a psychiatrist.”

In a statement to The New York Times, a MAGA Inc. spokesperson denied the $5 million donation played any role in Trump’s decision to pause the Biden-era rule, telling the publication that the president “always works for the best interest of the country,” and that “any suggestion otherwise is false.”