There is no shortage of headlines coming out of Washington surrounding President Biden’s recently proposed Build Back Better plan. Following through on his campaign promise, Biden introduced a massive spending bill designed to target some of the country’s neediest priorities. Infrastructure, climate change, and job creation are only the beginning. Should this agenda move through, there could be significant changes to healthcare and health insurance provisions.
Setting all politics aside, what’s important for businesses and Americans to understand is what all the Build Back Better agenda has the real potential to do. And while many plant their flags in more of a pro or anti stance, based on the opinions of the current administration, there is a lot to unpack in the official plans behind the Build Back Better policy. So today, we’ll look at what the proposal promises to do and explore implications and effects should it receive the support it needs in Washington. And at first glance, the Build Back Better plan could be revolutionary on the health insurance front.
What President Biden’s Build Back Better Agenda Promises
The mission statement behind the plan makes some pretty ambitious promises in a variety of segments. Some of the general sentiments suggest the nearly multi-trillion-dollar spending would fund infrastructure, the creation of ten million clean-energy-based jobs, and provide COVID-19 relief assistance. According to the White House statement, the agenda will also drive down costs of everything from childcare to housing. In addition, it plans to cut taxes and reduce overall expenses for “working families.” Up for debate, too, is the proposal to bring much-needed tax code revisions to the current taxation process.
The Committee for a Responsible Federal Budget tries to break down the spending into two significant pillars. First, there is an infrastructure investment and Jobs Act, expected to cost $550 billion. And secondly, there is another $3.5 trillion worth of framework mainly intended to provide support to improved climate change mitigation, healthcare, and American families. In terms of available federal budgets versus potential loans and projected deficits, CRFB projects the Build Back Better initiative will add nearly $2.9 trillion to the national debt over the next ten years.
Spending and Projections Aside, Build Back Better Means Lower Costs
When the Build Back Better initiative says the spending will lower costs, it plans to do so in a variety of areas. For example, costs associated with childcare will drop. Higher education expenses will decrease, too, with proposals of initiating a cost-free community college education option. Housing costs will also be slashed, targeting middle-class families and lower-income wage earners who represent some 10.5 million renters currently spending more than half of their regular income on rent.
Other household savings under the Build Back Better plan will come in the form of tax breaks. The proposal includes suggested tax cuts for families with children as well as reductions for workers without children to support. Other considerations also include reduced expenses for any households caring for elderly family members, combating the significant financial burdens to many Americans in light of the pandemic.
What the Build Back Better Agenda Will Do for Health Coverage
One of the key points of the Build Back Better agenda is spending to address the rising cost of healthcare, health coverage and providing options for Americans caught in the coverage gap. If no other proposed spending under this plan sounds worth it, the improvements to health and wellness for everyday Americans certainly will. And some speculate that even if only a portion of the Build Back Better proposal passes, these healthcare-related expense relief initiatives will likely be the adopted changes.
Should the Build Back Becker plan come to pass, nine million Americans would immediately begin saving roughly $50 per person every month in health insurance premiums alone. The spending would offset costs associated with dental health services, hearing care, and vision coverage for anyone on Medicare, as well. It would also see to it that the four million currently uninsured Americans qualify for affordable health insurance coverage, bridging a much-needed gap for individuals and families right now.
The proposition will also play a massive role in slashing costs associated with prescription drugs. When compared to other wealthy nations, Americans pay nearly three times more for their prescriptions. The Kaiser Family Foundation data suggests that almost one in every four people struggles to afford necessary medicines today. The Build Back Better agenda will not only lower prescription costs as a whole, but it will also give the Medicare platform the permission to negotiate with the pharmaceutical manufacturing companies on drug pricing. Driving down the cost of prescriptions for Medicare participants would be a significant step toward better health and wellness, a priority with the looming pandemic.
What a Better Health Insurance and Healthcare Environment Will Mean
Any business within the health insurance or healthcare industries should prepare for a more robust enrollment and adoption should President Biden’s Build Back Better plan become a reality. Even if a modified version of the plan moves forward, the benefits of increased funding to reduce monthly premiums alone will likely drive growing marketplace engagement. Reduced drug prices will mean more Americans can afford their prescriptions. And welcoming the millions of uninsured into the exchanges could translate significant business growth for participating providers and companies.
Those companies preparing to embrace the additional growth in ACA enrollment will need the right solutions and interoperability capabilities to maximize potential ROI. Softheon continues to lead the movement as a strategic partner for companies expanding with the market. The Build Back Better promises may not all come to fruition. However, any substantiated funding to the ACA to bridge the affordability gap for the uninsured, the expansion of Medicaid and Medicare potential, and to offset costs of quality healthcare will significantly transform the market landscape.
Explore your growth options with Softheon today and be ready for tomorrow, whether it’s Build Back Better infused or not. Let’s connect and discuss what you can do to prepare for whatever comes next in healthcare.