The Impact of U.S. Election and Healthcare Politics on Company Paid Health Insurance

Healthcare has long been a central issue in U.S. politics, touching nearly every American life. In recent years, company-paid health insurance has become a key focus, particularly as political views on healthcare differ significantly between Democrats and Republicans.

With an election looming, healthcare will remain a central issue. Both sides of the political aisle have their own agenda regarding health insurance coverage. In this article, we will explore both perspectives, reviewing past changes, current issues, and the potential impact of the 2024 election on employer-sponsored healthcare.

The Politics of Healthcare

The debate over American healthcare policies and the workplace is nothing new. In 1912, President Teddy Roosevelt endorsed a plan that included a health care policy, and since then, almost every decade after, insurance has been hotly debated.

The political divide over this topic is clear today: Democrats generally advocate for expanding access to affordable healthcare through government programs. Republicans often promote market-driven solutions emphasizing individual choice and competition. These contrasting approaches shape the policies that govern healthcare, including employer-sponsored plans.

While each election brings us closer to policy shifts, businesses must stay informed and adapt to changing regulations to ensure they can provide affordable, compliant healthcare options for their employees.

How Healthcare Politics Has Changed Over Time

The birth of healthcare policies initially emerged not to cover medical expenses but to protect workers from losing income due to illness or injury. One early example comes from the Granite Cutters’ Union, which provided its factory workers with “sick leave.”

This was among the first known instances of a company implementing a healthcare-related benefit to safeguard employees. From there, the concept of healthcare coverage expanded, evolving into some of the comprehensive policies we see today.

Over the past few decades, healthcare policies in the U.S. have evolved through various political administrations. The first colossal shift was the introduction of Medicaid and Medicare under President Lyndon B. Johnson in the 1960s. These programs provided essential healthcare services to the elderly and low-income individuals, marking a significant step toward government-backed healthcare in the United States.

In the following decades, different administrations also took various approaches to healthcare. In the 1970s, President Richard Nixon promoted Health Maintenance Organizations, which promoted a healthcare system that offered fixed processes offering affordable managed care.

In the 1990s, President Bill Clinton pushed for comprehensive healthcare reform, but his efforts were ultimately unsuccessful, revealing the deep political complexities and resistance to any sweeping changes in the healthcare system.

It wasn’t until the passing of President Barack Obama’s Affordable Care Act (ACA) in 2010 that a monumental shift in healthcare occurred. The ACA differed from previous proposals because it aimed to expand access to affordable healthcare through government subsidies and Medicaid expansion, leading many employers scrambling to adjust their healthcare plans to remain ACA-compliant.

However, following President Obama’s presidency, Republican-led efforts under the Trump administration sought to dismantle parts of the ACA, emphasizing individual choice and market-based solutions. Employers faced changes, including expanded options for short-term health plans and fewer mandates. These policy shifts shaped how employers had to navigate offering competitive health insurance while complying with government regulations.

In something like healthcare policy whiplash, the stage changed again under the next president, Biden, who immediately prioritized rebuilding and expanding the ACA the Trump presidency tried to dismantle. His administration rolled out measures to make health insurance more affordable, such as increasing subsidies for low- and middle-income Americans, extending enrollment periods, and pushing for more significant Medicaid expansion at the state level. His healthcare policies also focused on reducing prescription drug costs, including provisions under the Inflation Reduction Act of 2022 that allowed Medicare to negotiate drug prices for the first time—a long-sought goal of healthcare reformers.

Key Issues in Healthcare Politics Today

If the past century’s twists and turns in healthcare policy weren’t enough to set the stage, this election year brings up even more pivotal debates. This year healthcare conversations focus on several key issues that could significantly impact company-sponsored health plans today. These include:

  • Healthcare access and affordability
  • Insurance and coverage
  • Pharmaceuticals and prescription drugs

Healthcare access and affordability: Democrats typically advocate for and have hoped to make quality healthcare available to all Americans, but they hope for expanded access to affordable healthcare through government programs and subsidies. Republicans, however, favor that market-driven approach, emphasizing competition to drive down prices and improve care. These differences will likely influence future legislation that could affect employers’ contributions to healthcare.

Insurance and coverage: Democrats generally support expanding public options or providing universal healthcare coverage, reducing employers’ burden to offer extensive insurance packages. Republicans often push for more private sector solutions, encouraging Health Savings Accounts (HSAs) and high-deductible plans that give employers more flexibility but may place more financial responsibility on employees.

Pharmaceuticals and prescription drugs: Both parties agree that rising prescription drug prices must be addressed, but their approaches differ. Democrats have supported measures like allowing Medicare to negotiate drug prices, which could lower costs for employer-sponsored plans. Republicans have tended to favor market competition to reduce prices without heavy government intervention.

Healthcare Politics in the 2024 Election

Today’s key healthcare issues are poised to play a significant role in shaping the 2024 election. Healthcare policy remains a hot-button topic, and the recent Trump-Harris debate on September 10, 2024, highlighted the stark contrasts between the two candidates.

Former President Trump criticized the ACA, stating, “Obamacare was lousy,” and added, “it’s not very good today.” In sharp contrast, Democratic presidential candidate Kamala Harris argued, “Access to healthcare should be a right, not just a privilege,” emphasizing her plan to strengthen the Affordable Care Act if she is elected.

It’s clear that the Democratic platform under Kamala would continue to focus on expanding coverage, either through building on the ACA or moving toward a universal healthcare model. The Republican platform under Trump is still focused on changing the ACA, reducing government involvement in healthcare, and promoting free-market solutions like tax incentives for health savings accounts and flexible, lower-cost insurance options.

Public Opinion on Healthcare

Polling shows that Americans consistently rank healthcare as one of their top concerns. Many people are not satisfied with the availability of affordable healthcare. They continue to look to the government to take a larger role in controlling costs and expanding access. Voters highly support government action to make healthcare more affordable for them and their families.

Public sentiment reflects the tension between ensuring affordable access and preserving individual choice in healthcare options. Unfortunately, employers are caught in the middle, tasked with balancing costs, compliance, and employee satisfaction.

The Future of Healthcare in U.S. Politics

As healthcare continues to be a political battleground, employers can expect further shifts in healthcare policy, especially around employer-sponsored insurance. Whether future administrations expand government programs or leave more to private insurers and businesses, employers will need to be flexible and adapt their offerings to fit the new landscape.

Healthcare Politics FAQs

What’s the Difference Between Medicare and Medicaid?

Medicare is a federal program primarily serving seniors aged 65 and older, regardless of income. Conversely, Medicaid is a joint federal and state program that provides healthcare coverage to low-income individuals and families.

What Are the Political Factors that Affect Healthcare?

Political decisions regarding healthcare funding, regulation, and taxes all impact how health insurance is provided and accessed. Changes to laws, policies, or drug prices can dramatically shift the landscape for employers and employees.

How Does Healthcare Politics Affect Access to Care?

Policies that expand coverage (e.g., Medicaid expansion) generally increase access to care for more Americans, but these policies often come with higher costs to taxpayers or employers. Market-driven reforms may lower costs for businesses but could limit access to care for lower-income individuals.

Why Is Healthcare an Economic Issue?

Healthcare spending is a significant part of the U.S. economy. In 2023, healthcare costs rose to 4.8 trillion, outpacing its expected growth rate by a few percentage points. Rising healthcare costs will continue to affect individuals and businesses, making healthcare policy a central concern for economic growth and stability.

What Are the Potential Long-Term Effects on Company Paid Health Insurance?

Depending on which party holds power, employer-sponsored health insurance could become more or less burdensome. Expanding government healthcare programs could reduce the need for companies to offer more insurance, while deregulation may increase flexibility but shift more costs to employees.

Healthcare Policies Can Be Confusing — Let Wallace Welch & Willingham Help You Find the Right Insurance Plan

Understanding how political changes affect healthcare can be overwhelming, but it doesn’t have to be. Wallace Welch & Willingham is here to guide you through the complexities and help you find a health insurance plan that meets your needs, no matter what political climate we face. Reach out today to learn more about our solutions.