Trump's Next Moves: What Brokers Need to Know

As a new administration takes office, potential shifts in healthcare and benefits policies may impact brokers and their clients. Here are the major areas to watch:

1. Affordable Care Act (ACA) Reforms

Former President Donald Trump opposed the Affordable Care Act (ACA), citing concerns about its impact on individual choice and healthcare costs. He has argued that the law requires individuals to purchase insurance, diminishing personal freedom. Additionally, he has claimed the ACA has contributed to rising insurance premiums, making coverage less affordable for some businesses and consumers, particularly those who do not qualify for subsidies. During his first term, Trump’s administration implemented changes that reduced or altered elements of the ACA. Brokers should be prepared for the following:

• Shortened Enrollment Periods: Trump’s administration has previously cut down the ACA’s open enrollment periods, and this may continue. A shorter window for enrolling in or changing healthcare plans could confuse employees and limit their options. Brokers will need to be proactive in helping clients navigate these restrictions.
• Reduced Funding for Enrollment Assistance: Efforts to cut funding for marketing and outreach may persist, leading to fewer people being aware of their healthcare options. Brokers will play a crucial role in helping employees navigate these challenges.
• Expanding Short-Term Health Plans: One of Trump’s major priorities is expanding access to short-term, limited-duration health plans. These plans are typically less expensive than ACA-compliant policies, which makes them appealing to young, healthy individuals looking for more affordable options. Brokers will need to carefully assess whether these plans are suitable for clients, as they often provide limited coverage and may not meet employees’ needs for more comprehensive care.
• The Future of ACA Subsidies: Enhanced ACA subsidies, introduced through the American Rescue Plan (ARPA) in 2021 and extended by the Inflation Reduction Act (IRA) in 2022, have made health coverage more affordable for many people. These subsidies help lower the cost of premiums for individuals buying insurance through the ACA marketplace. However, these enhancements are set to expire after 2025. Any extension or modification would require congressional action, and the outcome will depend on legislative priorities and political negotiations. If subsidies are reduced or allowed to expire, some individuals may face higher premium costs, which could impact their ability to afford coverage. Brokers should stay informed on legislative developments and help clients understand how potential changes may affect their healthcare options and budgets.

2. Medicare and Medicaid Reforms

Former President Donald Trump has discussed potential reforms to Medicare and Medicaid, emphasizing efforts to reduce waste and fraud. In a recent interview, he stated that Medicaid would not be changed. Later, he expressed support for a House Republican budget plan that includes adjustments to Medicaid funding. 

There have been varying statements on Medicaid, making it important for brokers to monitor policy developments. Potential changes to Medicaid could affect low-income employees who rely on the program, potentially leading to increased demand for employer-sponsored health plans. Conversely, if reforms focus on reducing waste without cutting benefits, the impact on employer-sponsored plans might be less pronounced. Brokers should stay informed on legislative updates to help clients navigate any potential changes.