The election of Republican Donald Trump signals a new direction for federal health agencies and the sectors they regulate. Throughout his campaign, Trump emphasized economic reform and immigration policy, but healthcare remains a key arena where we may see substantial shifts.
Instead of outlining a comprehensive healthcare plan during his campaign, Trump has laid out broad objectives. He has pledged to tackle high healthcare costs, protect Medicare, and uphold specific social and religious policies, such as barring federal funds for gender-affirming care for minors and preserving religious exemptions for health services.
While Trump has signaled he will avoid revisiting the failed 2017 repeal of the Affordable Care Act (ACA), he is likely to focus on reducing costs within the current ACA framework. The Republican Senate majority will support Trump’s agenda and nominees, though the House control remains uncertain. Here’s a look at potential policy directions based on Trump’s first term and recent campaign messaging.
- Reducing Prescription Drug Prices
Trump’s first term saw several initiatives aimed at lowering drug prices, including measures to increase price transparency and benchmark U.S. prices against international rates. Similar efforts to make drug prices more competitive could reemerge, with a continued focus on transparency in pricing for hospitals and insurers. - Adjusting the Affordable Care Act
Rather than a full repeal, Trump may pursue ACA modifications, giving states more leeway to design Medicaid plans through block grants or waivers. This could allow states to customize Medicaid to better suit local needs, potentially reducing costs but varying significantly across states. - Increasing Transparency and Market Competition
Transparency was a key component of Trump’s healthcare policy, with rules requiring hospitals to disclose negotiated prices with insurers. Expect further moves to empower consumers with cost data, aimed at fostering competition among providers and reducing overall expenses. - Expanding Health Savings Accounts (HSAs) and Alternative Plans
Trump has long advocated for expanding HSAs, enabling consumers to use them for a broader array of expenses, including premiums and preventive care. Short-term health plans, which provide more affordable, less comprehensive options, could also see expansion, offering consumers more choices outside of ACA-compliant plans. - Reducing Regulatory Burdens on Providers
Deregulation has been a hallmark of Trump’s policy approach. Efforts to reduce administrative burdens for providers may continue, with an emphasis on redirecting resources from compliance to patient care. This could include measures to streamline federal reporting requirements and support for interoperability in health information systems. - Expanding Telehealth Services
Telehealth saw significant growth during the COVID-19 pandemic, with Trump’s administration actively supporting its expansion. This aligns with Trump’s stated goals of increasing healthcare access, particularly in rural areas, and telehealth flexibility may continue to be a priority, especially within Medicare.
Looking Ahead
As we await more specifics, Trump’s healthcare priorities are expected to revolve around reducing costs, expanding consumer choice, and fostering competition. Whether you’re a provider, payer, or work in healthcare-related industries, understanding these potential policy changes will be essential for adapting to what may become a more market-driven, state-tailored approach to healthcare in America.
For a deeper analysis of how your healthcare business may be impacted by Trump’s second administration, contact Quantum Health Advisors. We are ready to help you navigate the complexities ahead.