By: Perry Cohen, Chief Executive Officer, The Pharmacy Group
Donald Trump’s presidency signals to the healthcare industry that power will move from not-for-profit healthcare to for-profit healthcare companies.
As the Republican-led Senate and House move to “repeal and replace” the Affordable Care Act, not-for-profit health plans across the country will come to a standstill until they get a “clear path of sight” to success in the new administration.
Republicans will try to change the dynamics of financing medical care in the United States. Publicly held companies (e.g., health insurers, drug companies, PBMs, etc.) will have more influence in the marketplace versus locally based not-for-profit organizations (e.g., Blue Cross Blue Shield plans, regional health plans, hospitals, and community clinics).
Republicans will try to let the free market drive the changes with the delivery of medical care.
Federally funded initiatives to move healthcare from volume to value will disappear. Payors and providers will try to grab power in local geographic markets.
Republicans will push for old solutions to new problems and go back to ways to fund medical care that does not require individuals to buy health insurance.
Also, the federal subsidies that exist to help people purchase health insurance will be gone.
The next four years should be interesting.