How the Trump Administration Could Affect Employer-Sponsored Benefits

As a new administration takes office, potential shifts in healthcare and benefits policies may impact employers and their workforce. HR professionals must stay informed and proactive in addressing these changes to support employees and maintain compliance. Here are the major areas HR teams should monitor:

Affordable Care Act (ACA) Reforms

President Donald Trump has historically opposed the Affordable Care Act (ACA), citing concerns about its impact on individual choice and healthcare costs. During his first term, his administration implemented changes that reduced or altered elements of the ACA. HR teams should be aware of potential changes that could affect employee benefits, including:

• Shortened Enrollment Periods – Previous policy changes reduced the ACA’s open enrollment window, which may continue. A shorter sign-up period could lead to confusion and limit employees' ability to secure coverage. HR professionals will need to ensure employees are well-informed about deadlines through proactive communication strategies.
• Reduced Funding for Enrollment Assistance – If funding for outreach and education decreases, fewer employees may be aware of their healthcare options. HR teams will play a critical role in guiding employees through the enrollment process, ensuring they understand their options and deadlines.
• Expanding Short-Term Health Plans – Trump has supported expanding access to short-term, limited-duration health plans, which are typically more affordable but may not offer comprehensive coverage. HR professionals should assess whether these plans align with their workforce's needs and educate employees about potential limitations.
• The Future of ACA Subsidies – Enhanced ACA subsidies, introduced through the American Rescue Plan (ARPA) and extended by the Inflation Reduction Act (IRA), have made health coverage more affordable. However, these subsidies are set to expire after 2025 unless Congress extends them. If they are reduced or eliminated, employees may face higher premium costs. HR teams should stay informed on legislative updates and explore ways to support employees, such as offering financial wellness programs or adjusting benefits strategies.
  
  

Medicare and Medicaid Reforms

Trump has suggested potential reforms to Medicare and Medicaid, with mixed statements about whether cuts would be made. Any changes to Medicaid could impact employees who rely on it for coverage, potentially increasing demand for employer-sponsored plans. If reforms focus on reducing inefficiencies rather than cutting benefits, the impact may be minimal. HR professionals should stay informed on policy developments and be prepared to adjust benefits offerings accordingly.

Impact on Employer-Sponsored Health Plans

To ensure employees can navigate these potential changes with confidence, HR professionals must take an active role in educating and supporting their workforce. Clear and consistent communication is essential. Hosting benefits education sessions—whether through webinars, in-person meetings, or one-on-one consultations—can help employees better understand their healthcare choices. Additionally, providing timely updates on policy changes will keep employees informed and reduce confusion. Equipping employees with resources such as cost comparison tools, benefits guides, and decision-support software will further empower them to make informed decisions about their coverage and overall well-being.

With BerniePortal’s shopping cart feature, employees can see a clear breakdown of how their elections will be deducted from their paycheck each pay period. This transparency ensures they fully grasp the financial impact of their choices before enrolling. Additionally, the tool highlights employer contributions, so employees can see the full value of their benefits package—including any benefits your organization provides at no cost to them.

By offering this level of clarity, HR professionals can boost benefits engagement, reduce confusion during enrollment, and showcase the company’s investment in employee well-being—all while staying proactive amid shifting healthcare policies.

Additional Resources

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• BerniePortal Blog—a one-stop shop for HR industry news
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