The New Healthcare Landscape: Policy Shifts in the Post-Election Era and Their Potential Impact on Employee Benefits

Viewpoints by Craig Hasday

Healthcare got little campaign attention primarily because both parties agree: healthcare is too expensive. Since there are no clear answers, two main themes emerged on both sides. First, there was unanimous agreement that pharmaceutical costs are too high and, second, there is not enough transparency in our current system. Healthcare remains an important topic for Americans and one that all candidates would include as a top priority. As with every change in administration, we expect there to be impact to the employee benefits landscape. Unique to this administration, however, we can take a back look at the initiatives put forth by Trump in his prior administration to inform our expectations of what to expect when Trump takes office in 2025. Let’s look back at the healthcare related topics that were important in Trump’s prior administration:

1. Repeal and Replace Affordable Care Act (ACA)

One of the cornerstones of Trump’s healthcare agenda during his last presidency was to repeal and replace the Affordable Care Act (ACA). Trump criticized the ACA for its rising premiums, restrictive regulations on insurers, and mandated coverage for various services and argued that the ACA led to decreased consumer choices. During his presidency, Trump made several attempts to dismantle the ACA, proposing alternative solutions like the American Health Care Act (AHCA), which sought to reduce federal funding for Medicaid and eliminate the individual mandate that required Americans to have health insurance or pay a penalty. It is important to note that candidate Trump asserted in 2024 that he would not hesitate to change ACA if he is presented with something better.

2. Expansion of Health Savings Accounts (HSAs) and other coverage alternatives

Trump emphasized the importance of HSAs to empower consumers to take control of their healthcare spending. HSAs allow individuals to save money tax-free to pay for medical expenses. Trump proposed measures to increase contribution limits to HSAs and to expand their usability, allowing users to purchase insurance premiums and cover co-pays and deductibles. This approach aligns with Trump’s broader philosophy of promoting individual choice and reducing government intervention in healthcare. For this reason, there could be further support for Individual Coverage Health Reimbursement Arrangements (ICHRAs), short-term medical plans, and association plans.

3. Lowering Drug Prices

Another significant focus of Trump’s healthcare policy during his previous administration was lowering prescription drug prices. In his prior term, Trump was particularly vocal about the high costs of medications in the U.S. compared to other countries. Some initiatives included efforts to allow Medicare to negotiate prices directly with pharmaceutical companies and proposals to import drugs from Canada, where prices tend to be lower. Additionally, then-President Trump promoted the concept of online pharmacies and increased transparency in drug pricing to foster competition and reduce consumer costs. We can expect to see similar focus on these topics in the next administration.

4. Emphasis on Telehealth and Innovation

The COVID-19 pandemic brought telehealth to the forefront of healthcare. Trump’s administration recognized the potential of telehealth to improve access to care, especially for rural communities, and expanded telehealth services by relaxing regulations limiting technology use. This included increasing the number of services covered by Medicare and allowing more providers to deliver care remotely. This push for telehealth represents a response to a public health emergency and a long-term shift towards more accessible and efficient healthcare delivery.

5. Protecting Individuals with Pre-Existing Conditions

While aiming to repeal the ACA, then-President Trump also consistently stated that he wanted to protect individuals with pre-existing conditions, which was crucial in garnering support from many voters concerned about healthcare access and affordability. Trump proposed using high-risk pools as an alternative to guarantee coverage for those with pre-existing conditions, although critics argued these pools often came with higher premiums and limited options.

6. Supporting Value-Based Care

In line with a trend toward value-based care, Trump’s administration sought to transition the healthcare system from a volume-based model to one that focuses on patient outcomes and satisfaction. Value-based care models incentivize healthcare providers to deliver higher-quality care at lower costs, integrating various disciplines to improve care coordination. Initiatives included implementing programs that reward providers for achieving better patient outcomes and efficient service delivery.

A mix of reform, deregulation, and a shift toward consumer control characterized Trump’s healthcare agenda in his last administration. Trump’s attempts to repeal and replace the ACA, lower drug prices, expand telehealth, and protect pre-existing conditions highlighted a complex approach aimed at reshaping American healthcare. Using insights from Trump’s prior administration, we can anticipate Trump will continue to push the initiates described above which could have significant impact on the employee benefits landscape.

As the healthcare policy landscape continues to evolve, your organization needs a partner who can help you navigate these changes and optimize your employee benefits strategy. At EPIC Insurance Brokers & Consultants (“EPIC”), our experienced consultants stay ahead of policy shifts and industry trends to deliver innovative, cost-effective solutions tailored to your unique needs.

Don’t wait for policy changes to impact your benefits program. Contact EPIC today to schedule a comprehensive review of your employee benefits strategy. Our team will help you proactively address emerging challenges and identify opportunities to enhance your benefits offering while managing costs.

Contact our experts to learn how EPIC can help your organization thrive in today’s dynamic healthcare environment.

This article is intended for informational purposes only and does not reflect any political views or opinions. The content is purely factual and aims to provide unbiased information on the topic discussed.