As the incoming Secretary of Health and Human Services, Robert F. Kennedy Jr. will have a significant role in overseeing the operations of key healthcare programs such as the Affordable Care Act, Medicare, and Medicaid. While President-elect Donald Trump has shifted his stance on fully repealing Obamacare, the future of these programs under his administration remains uncertain.
Looking ahead to 2025, there are important deadlines that could potentially impact the direction of healthcare policy. The enhanced premium subsidies under the Affordable Care Act are set to expire by the end of the upcoming year. These subsidies, introduced by congressional Democrats during President Biden's term, have driven increased interest in the Obamacare exchanges. The extension of these subsidies is now in question with Republicans holding power in both the White House and Congress.
Another imminent deadline is the February 1 announcement regarding the 15 medications to be included in the second round of Medicare drug price negotiations. The initial round of negotiations is projected to result in substantial savings for the federal government and reduced out-of-pocket costs for seniors, as highlighted by the Biden administration.
It remains to be seen how the Trump administration will address these healthcare programs, including the Medicare drug price negotiation initiative that has faced opposition from pharmaceutical companies through legal challenges. While Trump initially supported linking US drug prices to those in other developed nations, his stance on this issue has evolved over time.
In addition to Medicare, Kennedy will play a role in potential changes to Medicaid, a crucial program providing healthcare coverage for low-income Americans. During Trump's first term, efforts to implement work requirements in Medicaid were largely thwarted by legal challenges, and attempts to reduce the program's funding were unsuccessful.
With Medicaid covering a substantial number of Americans, approximately 72.5 million, it is expected to be a focal point in Trump's second term, particularly if the GOP aims to generate savings to support proposed tax relief measures.
