6 Things That Could Happen to Medicare if Trump Wins the 2024 Election
Since it was rolled out in 1965, under then-President Lyndon B. Johnson, Medicare has grown to be a vital health insurance program for people aged 65 and older, along with people who may be young and have disabilities. According to the Center for Medicare Advocacy, as of March 2023, nearly 66 million people were enrolled in Medicare.
It would be dramatic to say Medicare is in peril; but it wouldn’t be dramatic to say that the program is under financial pressure due to higher healthcare costs and an aging population. KFF reported that based on current projections from the Medicare Board of Trustees in its 2024 report, the hospital insurance trust fund is projected to be depleted in 2036.
Learn More: I’m an Economist: Here’s My Prediction for Social Security if Trump Wins the 2024 Election
Try This: 7 Reasons You Shouldn’t Retire Before Speaking to a Financial Advisor
What will happen to Medicare by 2036? More immediately, what could happen to the program under the leadership of Trump, should he win a second term?
Josh Thompson, CEO at Impact Health USA, spoke with GOBankingRates about how a second term for Trump could change Medicare.
Earning passive income doesn't need to be difficult. You can start this week.
Increased Privatization and Medicare Advantage
Trump’s administration previously favored Medicare Advantage plans, providing private alternatives to traditional Medicare. A second term would likely continue this trend, offering more plan choices and potentially innovative services.
Increased privatization could drive competition, reduce costs and improve service quality, ultimately benefiting beneficiaries.
Read Next: Trump Wants To Eliminate Income Taxes: How Would That Impact You If You Are Retired?
Prescription Drug Pricing Reforms
During his time serving as the 45th president of the U.S., Trump made efforts to lower prescription drug prices through executive orders. We’d likely see his administration further these initiatives over the next four years.
“These could include international price indexing or other measures to reduce prescription drug costs, significantly benefiting Medicare recipients who face high medication expenses,” Thompson said.
Block Grants and State Control
Thompson said Trump might push for block grants, allowing states more control over Medicare funds.
“This could lead to tailored, localized solutions but also create disparities in coverage depending on state management,” Thompson said. “Block grants could incentivize states to innovate and manage resources more efficiently, potentially improving care quality.”
Ease of Use and Technological Integration
This may happen regardless who becomes president, though Thompson said it’s likely to happen under the Trump administration: a focus on using technology to streamline Medicare processes.
“Simplified digital interfaces for enrollment and plan management could enhance user experience, making it easier for seniors to navigate their healthcare options,” Thompson said.
Tax Implications and Funding Challenges
Things could get especially interesting in terms of tax implications and funding.
“Potential tax cuts under Trump’s policies could lead to funding challenges for Medicare,” Thompson said. “This might necessitate adjustments in benefits or cost-sharing measures, impacting recipients’ out-of-pocket expenses.”
Stay Informed Every Step of the Way
Ultimately, Trump’s policies regarding Medicare could lead to increased privatization and changes in drug pricing, affecting how beneficiaries interact with Medicare. It’s important to stay in the loop, regardless of who becomes president.
“Staying informed about these potential shifts is crucial for navigating the evolving landscape of healthcare,” Thompson said.
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
More From GOBankingRates
2 Regions in the US Where the Housing Market Is Starting To Shift
If You Shop Online, Make Sure You Do This -- It Could Put an Extra $200 in Your Wallet
This article originally appeared on GOBankingRates.com: 6 Things That Could Happen to Medicare if Trump Wins the 2024 Election