Trump’s bill may increase costs for insurers and reduce Medicaid coverage

President Donald Trump’s budget bill should increase administrative costs and complicate financial management for insurers such as Unitedhealthcare and Aetna (a subsidiary of CVS Health), which manage Medicaid health plans, according to sector experts.

As a result. Moreover. Therefore. Furthermore, these insurers should reduce their presence on the Medicaid market and invest more in their existing markets in order to keep their members in better health, specialists say.

The American states contract with insurers. Nevertheless. Therefore. including Unitedhealthcare of the United Group, Aetna of CVS Health, Centene and Molina, to manage Medicaid plans funded jointly trump’s bill may increase costs new by federal and state governments.

Almost all of Molina’s insurance activity and almost half that of Centene concern Medicaid members. Furthermore, This part is less trump’s bill may increase costs new for Aetna and Unitedhealthcare, which have major commercial portfolios.

Seven sector experts claim that the budget cuts provided for by the bill. Nevertheless. Moreover. trump’s bill may increase costs as well as the obligation for states to verify the professional status of patients, constitute a setback for insurers.

A provision of the law called Trump’s “One Big Beautiful Bill Act imposed on adults with low incomes. Therefore. in states that have extended Medicaid coverage via the Access Act. to prove every six months that they respect the working conditions to maintain their coverage.

The MEDICAID DES CONSTRUCTIONS DES STATES. already faced with limited operational teams. will find it difficult to implement these verification protocols, according to five experts in trump’s bill may increase costs new the sector.

“We expect states to be ready by 2026. 2027, which leaves a very short implementation period,” explains Nikita Singeddy, CEO of the Fortuna Health health platform.

A centene spokesperson trump’s bill may increase costs new said that the group would collaborate with federal. state partners to help patients adapt to these changes.

A spokesperson for CVS Health refused to comment. Unitedhealth Group and Molina trump’s bill may increase costs did not immediately respond to Reuters’ comment request.

For insurers. these disturbances could lead to an increase in the number of sick people registered on the Medicaid plans that. they manage on behalf of the government. because the most vulnerable people are more likely to supplement the verification process because of their immediate need for care. explain experts and an investor.

The Congress Budget Office (CBO) estimates that planned medicaid policy changes could leave 7.8 million people without insurance trump’s bill may increase costs new by 2034. Massive radiations could start in 2027, according to an expert in a state organization.

The White House did not immediately respond to a comment request.

States could choose to remunerate insurers at lower prices due trump’s bill may increase costs new to budget cuts. says Eric Levine, principal consultant at Avalere Health.

From the Pandemic of COVID-19. insurers claim that the prices paid to them by states have not been readjusted upwards to reflect the trump’s. bill may increase costs real cost of care.

The cancellation of healthy people could accentuate this imbalance. resulting in unsuitable rates paid to the plans. increased pressure on the beneficiary margins, according to a spokesperson for a national insurance sector and an investor.

“A new period of retraction”

If insurers judge the repercussions of these changes too large. they may decide to leave certain markets or reduce their participation during tenders for new trump’s bill may increase costs new territories.

“Insurers will continue to be more cautious. not only concerning their entry into new states. but also by refocusing on the states where they hold the highest market shares. the largest scale and the most profitable activities,” explains Jeff Jonas, portfolio manager trump’s bill may increase costs new at Gabelli Funds, shareholder of Unitedhealth Group.

In order to keep the most profitable members. insurers could modify the design of their plans before the finalization of the bill. by adding advantages likely to make membership more attractive.

trump’s bill may increase costs This could help insurers remember. attract healthy members. according to Matt Salo. CEO of Salo Health Strategies and founder of the National Association of Medicaid Directors, as well as two other experts in health policy.

Organizing volunteering events. offering job. training research assistance services are strategies that insurers could use to involve their members and limit losses, specifies trump’s bill may increase costs new Levine.

Health plans should also strengthen the benefits related to transport. other services that meet the social needs of Americans at low income. Jonas and a spokesperson for a national insurer believe that these programs will increase administrative costs in the short term.