Trump’s Healthcare Blueprint: Lower Costs, Expand Options
As the Trump administration prepares to take office, the President-elect’s healthcare priorities are expected to focus on curbing costs and offering alternatives to the Affordable Care Act (ACA).
While specifics remain uncertain, analysts predict Trump will revisit key policies from his campaigning days. Experts anticipate renewed efforts to lower healthcare expenses, broaden access to non-ACA coverage options like association health plans, and support paid leave legislation.
However, there seems to be strong opposition from Trump and Congressional Republicans towards extending existing ACA subsidies set to expire in the coming year.
"Despite the lack of concrete healthcare plans, Trump’s stance on key issues will likely become clearer once he appoints leaders for crucial agencies," stated Geoff Manville, a partner with Mercer’s Law and Policy Group. These key positions include the heads of the Department of Health and Human Services, the Centers for Medicare and Medicaid Services, and the Department of Labor.
Bipartisan Focus: Making Healthcare Affordable
While detailed plans remain under wraps, one area boasting bipartisan support is healthcare affordability. Both political parties recognize the need for reforms to control costs for both individuals and employers.
Trump is expected to reintroduce several proposals from his previous campaigns, including:
- Reducing drug costs.
- Increasing price transparency and promoting greater competition among providers.
- Expanding non-ACA options like association health plans and short-term limited duration insurance.
- Improving and expanding health savings accounts.
Furthermore, Trump’s campaign platform included requiring employer plans to cover in-vitro fertilization.
Lame Duck Session Could Usher in Healthcare Changes
While the nation focuses on the potential changes come 2025, several crucial healthcare issues languish in Congress awaiting action. Some reforms boasting bipartisan support could see movement during the ongoing lame duck session.
These reforms include:
- Pharmacy benefit manager reform: This reform could include banning "spread pricing," requiring greater transparency from PBMs regarding their business practices, mandating the full disclosure of rebates and discounts to plan sponsors, and requiring PBMs and third-party administrators to disclose all compensation received.
- Price transparency: Codifying existing rules that mandate the disclosure of out-of-pocket costs and negotiated rates to both plan members and beneficiaries would be a vital step towards greater transparency.
- HSA modernization: Allowing individuals to convert existing health flexible spending accounts or health reimbursement arrangements into HSAs opens up new possibilities and choices for individuals.
Retirement Policy: A Continued Area of Focus
Retirement policy is another issue expected to remain relevant in the coming political landscape. Analysts predict Congress will grapples with several key retirement-related policy issues:
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Potential revenue raisers: As Republicans seek to offset the cost of extending individual tax cuts expiring in 2025, retirement-related revenue raisers may enter the debate.
- Legislation: Bills permitting 403(b) investments in collective trusts and those correcting certain provisions in SECURE 2.0 may see passage in the lame duck session.
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Laying the groundwork: Initial discussions regarding a potential SECURE 3.0 package could begin.
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Reversing DOL rulings: Legislative efforts in the new year could aim to reverse Department of Labor rules regarding the use of environmental, social and governance investment factors.
- Strengthening single-employer defined benefit system: Lawmakers are likely to continue exploring ways to bolster the existing single-employer defined benefit system.
As the transition unfolds, and the details of Trump’s healthcare agenda emerge, the impact on Americans’ healthcare access and costs will be closely watched.
