Trump Administration’s Health Care Priorities: Cost Reduction and ACA Alternatives

Trump Administration’s Health Care Priorities: Cost Reduction and ACA Alternatives

November 26, 2024 Catherine Williams - Chief Editor Health

The incoming Trump administration will likely focus on reducing health care costs and offering alternatives to Affordable Care Act (ACA) plans, according to a panel from Mercer. President-elect Donald Trump has not shared many details on health benefits policy but is expected to revisit his previous administration’s policies.

Trump aims to reduce health care expenses and promote non-ACA options like association health plans. He is also expected to support paid leave laws. However, he and congressional Republicans may oppose extending ACA subsidies that are set to expire.

Both major political parties support reforming health care affordability. Key priorities include:

  • Lowering drug prices.
  • Increasing transparency in pricing and expanding competition among providers.
  • Expanding options outside the ACA, such as association health plans and short-term insurance.
  • Enhancing health savings accounts.

Trump has proposed requiring employer plans to cover in-vitro fertilization.

In the immediate future, there are several bipartisan health care reforms awaiting congressional action, which could occur during the 2024 lame duck session. Possible reforms include:

  1. Pharmacy Benefit Manager (PBM) reform: Policies may restrict certain pricing practices, require disclosure of business practices, and ensure rebates and fees are passed through to sponsors.

  2. Price transparency: New rules may require health plans to disclose out-of-pocket expenses and negotiated rates.

  3. Health Savings Account (HSA) modernization: Individuals may be allowed to convert flexible spending accounts into HSAs.

In addition to health care, retirement policy remains a bipartisan focus. Key issues include:

  • Potential revenue raisers to discuss during the 2025 tax debates.
  • Legislation allowing 403(b) plans to invest in collective trusts.
  • Preparation for a SECURE 3.0 package.
  • Legislative efforts to change Department of Labor rules on investment factors.
  • Initiatives to improve the single-employer defined benefit system.

These developments indicate an active legislative agenda focused on significant health care and retirement issues.