How the Trump Administration May Impact the Employee Benefits Landscape
Former President Donald Trump has won a second presidential term. Employers can expect a number of changes to employee benefits under the Trump administration. Although the specific policy objectives that are enacted remain to be seen, employers may look to the campaign policies that President-elect Trump ran as well as the initiatives that Trump took during his first term in office, as an indication of what is to come.
Furthermore, the Republican party will have majority control of the U.S. Senate and retain a narrow margin in the U.S. House of Representatives, which can significantly impact legislation passed in the upcoming term.
This article summarizes positions on employee benefits-related topics from Trump’s official platforms, public statements on relevant issues and previous public policy records. Any insights are purely speculative and do not indicate or predict future policy.
Affordable Care Act
During his first term, Trump’s administration pursued attempts to replace or partially repeal the Affordable Care Act (ACA). A full repeal or replacement is unlikely in the upcoming term, as the ACA has grown in popularity and was not a campaign talking point like it was in 2016. However, the Trump administration will make decisions that will impact the future of the ACA.
The Biden administration passed the Inflation Reduction Act of 2022, which was largely focused on COVID-19-related relief but also included ACA subsidies. The subsidies cut premiums for millions of plan participants and increased overall enrollment. These subsidies were extended for three years through the end of 2025. Unless Congress chooses to extend them in 2025, they are set to expire at the end of the year. Industry experts suspect that the enhanced subsidies on the ACA that are set to expire at the end of 2025 will be less likely for renewal with a Trump administration. Without the subsidies, enrollment will likely suffer as premiums skyrocket. Additionally, the new administration could alter the ACA in other ways, such as eliminating employer mandate penalties or simplifying the reporting requirements. While large-scale federal legislation does not appear to be likely, the new administration may impact the future of the ACA on a smaller scale.
Medicare and Medicaid
According to Trump’s platform, his administration will “protect Medicare.” The platform also plans to shift resources back to at-home senior care. During Trump’s previous term, enhancements were made to Medicare Advantage plans, including increasing access to telehealth and expanding supplemental benefits for seniors with chronic diseases.
In 2020, the Trump administration capped insulin to $35 per month through 2023 for qualifying Medicare Part D plans. Not all Part D plans participated. Next, the Biden administration passed a broader $35 insulin cap for Medicare participants through the Medicare Drug Price Negotiation Program. The Trump platform has indicated it will work to lower health care costs for health care and prescription drugs. While the Medicare program negotiations are currently set to continue, many are speculating about how these price negotiations might change under a Trump presidency.
Article Published By: Zywave, Inc.
