The ColoHealth Health & Wealth Newsletter
March 2025
Vol. 28, Issue 3

The Seven Biggest Healthcare Reforms Trump and Kennedy Will Make

It’s official!

Robert Kennedy is the new Secretary of Health and Human Services, confirmed in a nearly party-line vote.

The Trump Administration thus far has been aggressively pursuing reforms in other departments – and Secretary Kennedy will be no exception. The new Administration believes that the people voted for change, and we expect Kennedy will be driving major reforms throughout the Department.

Here’s a run-down of what you can expect from the new Administration, when it comes to health policy.

Who is Robert F. Kennedy Jr.?

Robert F. Kennedy Jr.’s appointment as the Secretary of Health and Human Services likely portends a significant shift in U.S. healthcare policy.

A long-time Democrat before joining the Trump campaign, has a long background as an advocate for environmental causes. For example, he founded the Waterkeeper Alliance, an organization dedicated to protecting waterways from pollution.

More recently, Kennedy became a controversial figure due to his views on vaccines and public health. He became perhaps America’s most well-known vaccine skeptic. For example, he led Children’s Health Defense, a nonprofit organization critical of vaccine mandates and corporate influence in healthcare.

Expect a pivot towards more emphasis on healthcare freedom, consumer choice, and alternative health policies.

You can also expect more scrutiny of pharmaceutical companies, and perhaps most controversially, more emphasis on individual liberty with vaccination policies.  

What to Expect

I’ve been following Robert Kennedy’s career for a long time. And of course, I’m a lifelong student of healthcare finance and policy! Here’s a breakdown of some of the major changes I expect from Kennedy and the Trump Administration.

1.) Expansion of Health Sharing and Direct Primary Care

The new Administration may place more emphasis on new models of healthcare delivery, such as low-cost health sharing plans and Direct Primary Care (DPC). 

We may see a push to treat these models more fairly under the tax code, which currently denies them many of the tax deductions that apply to traditional health insurance premiums – even though they serve the same purpose of improving affordable access to healthcare. . 

We would regard this as a particularly welcome change, as it would provide more consumer choice. It would also allow consumers to escape the narrow networks that too often plague traditional health insurance products like HMOs. 

2.) More Encouragement of Health Savings Accounts

We may see more emphasis on the role of health savings accounts and high-deductible health plans (HDHPs).

Enrollment in an HDHP is required to contribute to an HSA.

Under the Trump Administration, we could see a push for higher HSA limits, more flexible options for lower-income taxpayers, and more incentives to employers to make HSA contributions on employees’ behalf.

3.) Big Changes to Vaccine Policies

With Kennedy’s confirmation, we expect major shifts in vaccine policies.

Possible changes include:

• Rolling back federal vaccine mandates for schools and workplaces
• Allowing more exemptions for personal and religious beliefs
• More scrutiny on vaccine safety and pharmaceutical company influence

4.) Drug Pricing Transparency and Industry Reform

Kennedy has long criticized the pharmaceutical industry’s undue influence over health policy.

Expect more aggressive action on drug pricing and transparency.

Potential reforms include: 

• More transparency in drug pricing from manufacturers
• Increased regulation of pharmacy benefit managers (PBMs)
• Stronger enforcement against price gouging
• More generic and alternative drug options

Lower drug prices could help consumers. But pharmaceutical companies and their allies and lobbyists in Congress will be kicking and screaming the whole time.

5.) FDA Reform & Nutrition Policy Changes

Kennedy has called for FDA reform to reduce the agency’s ties to pharmaceutical and food industry lobbying. Expect stricter regulations on food safety and labeling.

For example, we may see the following changes. 

• More scrutiny of food additives, seed oils, pesticides, and GMOs
• Stronger food labeling laws (e.g., clearer disclosures on processed foods)
• More oversight on ultra-processed foods linked to obesity
• A full-court press to address lifestyle-related conditions like diabetes, obesity, inflammation, and hypertension. 
• More support of holistic and alternative medical treatments and approaches such as integrative medicine. 

6.) Less Access to Medicaid for Non-Citizens

Kennedy may make it more difficult for immigrants to access Medicaid or other public health programs.

Illegal immigrants are generally prohibited from accessing these programs. But new and stricter “public charge” rules would affect legal immigrants, as well. Immigrants seeking residency will likely have to show more proof that they are not likely to require public assistance.

Legal immigrants will still be able to purchase health insurance or a health sharing plan, or if they have work permits, to receive coverage from employers. 

Steps to Take Now

You can expect a lot of change to occur over the next year or two.

Most of them will be positive. But as always, policymakers should be very aware of the Law of Unintended Consequences. This has been a bugaboo for radical reformers since the Dawn of Time.

Meanwhile, here’s what I suggest: 

✔ Stay informed about upcoming rule changes, enrollment deadlines, and changes in how healthcare plans are taxed.

✔ Review ALL your options each year.  For example, don’t just look at Obamacare-style insurance plans, but also consider alternatives like health sharing plans and direct primary care options, as well.

If tax laws change, or if policies regarding drug costs and pre-existing conditions change, it may make a lot of sense to change your health plan.

✔ Talk to your Personal Benefits Manager before making healthcare decisions.

Got questions? That’s what we’re here for!

Your PBM is one of a very select few health benefits professionals who can talk to you about all your options, including money-saving non-insurance alternatives like health sharing.

Most brokers don’t even let their agents talk about health sharing – no matter how much money it saves the client. We encourage it! And our PBMs are experts on health sharing, DPC, and other great ways to make healthcare better and more affordable.

Oh, and there’s never any charge for a consultation.

Thank you again for subscribing! And keep a lookout in this space next month for our next newsletter.

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