How Will the Election Affect my Medicare?
With Former President Donald Trump being re-elected to the office for a second term, change is expected. During his campaign, Donald Trump was eager to advocate for accessibility and security for national healthcare. According to a September poll, protecting Medicare and Social Security is one of the most important factors in America’s vote. This healthcare issue determined about 63% of Americans’ votes in the presidential election.
The outcome of the election could very well change the norm for this almost 60-year-old program. Throughout his campaign, Trump addressed several challenges that Medicare is facing. Based off of his promises, his responses to accusation, and what’s listed in Project 2025, here are 4 ways that the election could affect Medicare:
Increase of Medicare Advantage Plans
Currently, more than half of Medicare beneficiaries are enrolled in Medicare Advantage plans. These are plans run by private, non-government insurers. With Trump taking the 47th Presidential seat, that number is expected to grow — perhaps significantly. Historically, Trump and many Republicans have endorsed and promoted Medicare Advantage. With Trumps election, it is reasonable to expect policies in favor of Medicare Advantage.
Further, the Heritage Foundation has proposed Project 2025, a presidential transition project. Among other things, Project 2025 suggests making Medicare Advantage plans the default enrollment option for Medicare. Doing so would effectively privatize the program, as many seniors tend to stick with their health plan. However, the option to enroll in a different plan or Original Medicare is still available during Open Enrollment.
Those behind this say Medicare beneficiaries are better off in Advantage plans. Medicare Advantage offers more benefits than traditional, government-run Medicare. On the contrary, others say increasing companies control could trap Medicare Beneficiaries. Between higher costs and more restrictions and prior authorization requirements, getting care and coverage would be difficult.
During Trump’s previous presidency, telehealth access was expanded, giving seniors more options to receive help. Additionally, for seniors suffering from chronic diseases, supplemental benefits were expanded. If his last presidency is anything to go off of, Trump will likely continue to support Medicare Advantage.
The Scope of Medicare
Throughout his campaign, many accused Trump of trying to cut Social Security and Medicare. During his administration, Trump proposed four annual budgets, all of which reduced Medicare Spending. In addition, Trump had floated out the idea of cuts during an CNBC interview earlier this year.
Despite this, Trump states that he “will not cut one penny from Medicare.” The GOP 2024 platform has also states that they will “protect Medicare and ensure seniors receive the care they need without being burdened by excessive costs.”
On the flip side of the coin, Trump has not suggested expanding Medicare. While he claims to not make any cuts, it’s also unlikely that the scope of Medicare will increase. Seemingly, the best case scenario for the upcoming presidential term is that the scope remains the same.
Medicare’s Solvency
Medicare forecasts potential financing problems by around 2036. The health care system is one of the fastest growing government programs. Medicare Part A will be financially stressed, being funded largely through payroll taxes. Medicare Parts B and D, and Medicare Supplement plans, are supported by premiums and revenues. Therefore, they are not expected to run into financial constraints.
If trends continue, Medicare would only be able to cover roughly 90% of Part A costs come 2036. It could also come sooner, or later, depending on a variety of factors. The fund for Medicare Part A is significantly influenced by the economy, taxes, use of services, and action by the current administration. Therefore, the administration has a lot of influence on Medicares solvency, even outside of direct action.
Neither Trump nor Harris addressed the potential, upcoming issue of Medicare solvency. The 2024 Republican platform vowed to strengthen Medicare for future generations. However, no specifics were provided.
Given Trump’s promises to reduce restrictions and support Medicare Advantage, it’s unsure how the program will be funded.
Part D Prescription Costs
Many efforts from both sides have been supportive of improving Part D and lowering costs. Previously, Trump had pushed for lower drug costs. During his tenure, he tried to permit the importation of lower-priced medications from Canada. In his 2020 campaign, Trump was committed to improving access and coverage for Medicare Advantage and Part D.
However, part of Project 2025 aims to repeal the Inflation Reduction Act. This includes the removal of the $2,000 cap on out-of-pocket costs. While it may be unlikely, repealing the Inflation Reduction Act would mean higher drug costs for many. Should this happen, it would go against much of what Trump has promised and advocated for.
Conclusion
Medicare faces many challenges each year, and federal regulation impacts health coverage for many people. An important part of managing your health care is supporting policies that support your coverage. With Trump’s election, there are some expected ways the election will affect your Medicare. We recommend studying policies and rulings to understand how you can be affected. Keeping up to date is the best way to make informed health decisions.
If your health coverage becomes insufficient, get in touch with a Medicare Advocate. We are focused on keeping you in a plan fit for your health needs. We are licensed to explore the best plans in your area. If you have any questions, give us a call.
