CBO Report: Trump-Era Policies Drive Highest Health Premium Hikes in 15 Years

The Congressional Budget Office (CBO) reports that health coverage is becoming less affordable for millions of Americans, with employer-sponsored insurance premiums experiencing the steepest increase in 15 years. This trend is largely attributed to regulatory and budgetary changes implemented during the Trump Administration, including policy shifts, tariffs, and legal adjustments. These changes have cumulatively resulted in around 15 million Americans potentially losing health insurance coverage over the next decade. The report highlights that an additional 3.8 million people could lose coverage if Republicans continue opposing Democratic proposals to extend existing health-related tax credits.

The CBO analysis underscores the impending expiration of boosted tax credits for individuals purchasing insurance independently, scheduled for late 2025. Without extending these credits, Americans face significantly higher premiums and deductibles, which could discourage enrollment during the Affordable Care Act (ACA) open enrollment starting November 1st. Such increased costs could reverse gains in health coverage access made under the ACA.

Further complicating the landscape are new ACA-related regulations enacted under the Trump Administration, some of which have been blocked by courts but are poised to increase bureaucratic hurdles for consumers. These rules may raise healthcare costs and permit insurers to offer less comprehensive coverage. Additionally, proposed budget bills advocating for cuts to the ACA threaten to reduce the availability of affordable healthcare options for many Americans.

This situation presents critical regulatory and compliance challenges for insurers and healthcare providers, as market dynamics shift in response to policy changes and funding uncertainties. The anticipated premium increases and coverage losses could influence insurer underwriting strategies, risk assessments, and pricing models. It also signals the necessity for policymakers to reconsider bipartisan solutions that sustain financial relief mechanisms integral to maintaining consumer access to healthcare coverage.

Overall, the CBO's data-driven insights highlight an urgent call for legislative intervention to address affordability and accessibility issues within the health insurance market. The potential rollback of tax credits and the implementation of restrictive rules may destabilize the individual insurance market, affecting payer/provider relationships and consumer affordability. Industry stakeholders must closely monitor these developments to adapt to the evolving regulatory environment and compliance requirements.