What Will President Trump’s Impact Be on Employer-Sponsored Health Plans in 2025?
In the first two weeks of his second term, President Donald Trump signed a series of executive orders aimed at rolling back Biden-era policies and advancing his own administration’s priorities. Among the most impactful for employers are the revocations of Executive Orders 14009, 14070, and 14087, which focused on strengthening Medicaid, the Affordable Care Act (ACA), and reducing prescription drug costs. These changes could significantly affect employer-sponsored health plans in several key ways. Medicaid and ACA Rollbacks Could Increase Employer Costs Medicaid Cutbacks : With fewer federal protections and funding for Medicaid, states may reduce coverage, which could push lower-income employees and their families to seek employer-sponsored health plans. Employers with a higher proportion of low-wage workers may see increased health plan enrollment and costs. Individual Market Instability : If ACA marketplace subsidies are reduced or eliminated, employees may struggle to afford ind...