From potential Medicaid cuts to government changes, there are many recent policy announcements that impact health care.
Several of these announcements have a significant impact on employers’ development of health benefits strategies. Ellen Kelsay, CEO of Employer Advocacy, shared her most important policy trends right now in a recent interview at a health conference in Nashville:
1. Macroeconomic Trends: Employers are already dealing with rising health care costs, and some current macroeconomic trends may exacerbate these issues. For example, Medicaid funding may be cut, which could have a serious impact on employers, as the commercial market has long subsidized Medicaid programs. Hospitals and providers often charge more for business plans to compensate for the losses they have caused through government-funded programs.
“I’ve spoken to some health plan supervisors who would be outspoken, like: “Well, if we’re being cut here, that means we’re going to have to turn around and charge more to the commercial market.” It seems like this is just an assumption that the commercial market will continue to pay and they can’t pay more. ” she said.
In addition, the Trump administration imposed a 145% tariff on all imported goods from China. Many healthcare products, including active pharmaceutical ingredients and medical equipment, are manufactured in China. He also filed a 10% commodity tax to other countries. Kelsey said there are concerns that these tariffs could further increase costs for employers.
2. Administrative changes: Several new players in the Trump administration have impacted health care, such as Robert F. Kennedy Jr. of Health and Human Services and Dr. Mehmet Oz of the Medicare and Medicaid Services Center. Kelsay said healthy conglomerates have been focusing on “some of these new players are considering, things they may be promoting may be very beneficial or potentially harmful to employer programs and program members.”
She takes the role model of RFK Jr. to make America healthy again (MAHA) initiative. Maha has some elements of health support, such as emphasis on prevention and nutrition. However, some parts of Maha are very worrying, including the downplay of the vaccine.
“Yes, a healthy diet and nutrition are important,” Kelsey said. “But a big part of prevention is to make sure children are vaccinated and get vaccinated, and if there is another pandemic, people will get the vaccine they need.
3. Threat to Erisa: State and local laws and other participants face challenges in the Employee Retirement Income Safety Act (ERISA). ERISA is a federal law that sets minimum standards for private health programs. Health conglomerates are the leading advocates of protecting ERISA, arguing that this is crucial to establishing a consistent regulatory structure for employers.
“It is crucial for large, self-sufficiency employers who operate in many U.S. states, having a unified, consistent national program is crucial for them,” Kelsey said. “So when there are some threats to ERISA, there is some concern for employers.”
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