Trump's Bill Stirs Medicaid Insurer Turmoil
President Trump's spending bill might elevate administrative costs and complicate Medicaid management for insurers like UnitedHealthcare. This could lead to insurers withdrawing Medicaid coverage while focusing on existing markets. Restrictions requiring low-income adults to verify work status could further destabilize Medicaid operations across states.
President Donald Trump's proposed spending bill is poised to increase administrative costs and create challenges for insurers managing Medicaid health plans, according to industry experts. Companies like UnitedHealthcare and Aetna may need to reconsider their Medicaid strategies, potentially scaling back coverage and shifting investments to maintain healthier member bases.
The bill mandates that low-income adults in Medicaid-expanded states under the Affordable Care Act prove every six months they meet work requirements to keep their coverage. This stipulation poses operational hurdles for understaffed state Medicaid departments, some experts noted, urging readiness by 2026 or 2027.
The looming changes have raised concerns among insurers and policymakers, with potential policy shifts resulting in 7.8 million people becoming uninsured by 2034. Industry players predict strategy adjustments, including market exits and redefined offerings to attract healthier members, might ensue.
(With inputs from agencies.)
Google News