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Insurance companies are cautiously optimistic about the Trump administration’s policies for their industry: insurers saw their stocks soar in early April when the federal government announced a record 5.06% benchmark increase to Medicare Advantage plans.
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That is more than double the rate (2.23%) proposed by the Biden administration in January 2025, which was seen as a budget cut by the insurance industry. The Trump administration increase will amount to $25 billion for insurers like Humana and UnitedHealthcare, which participate in the revitalized Medicare Advantage program.
Advocates highlighted that program costs have seen margins fall sharply in the insurance sector. Enrolled older adults have used more care than anticipated since the pandemic, and many insurers have already cut benefits, exiting some markets to remain profitable. The increased funding is expected to make health insurance companies a haven on the stock market during an unpredictable and volatile time.
Trump’s policies and their impact on older adults
There is little evidence, however, that Trump’s policies will be a big win for the average American. While a boost in funding might mean savings will be passed on to clients, it seems more likely that the cash injection will be used to rally the insurers’ market performance.
“Though required by law, this excessive increase in payments to Big Insurance — when evidence demonstrates they are already being overpaid — demonstrates the crucial need for Congress to fix the way payment rates for MA insurers are calculated,” pundit Rachel Madley wrote on her Substack called Health Care Un-covered [1]. “Sadly, analysts expect the extra payments Big Insurance will get in 2026 will go to increasing profit margins, not increasing benefits or availability of care.”
Considering this policy change will not impact the cost of health care — which has risen 3.3% between 2023 and 2024 [2], higher than the rate of inflation — those on Medicare should consider supplementing their plans with a long-term care insurance policy through companies like GoldenCare.
Long-term care insurance covers the costs of in-home assistance, nursing homes or assisted living facilities, which Medicare does not.
You can customize your plan based on your needs, including hybrid life, annuity with long-term care benefits, short-term care, extended care, home health care, assisted living and traditional long-term care insurance.
Read more: US car insurance costs have surged 50% from 2020 to 2024 — this simple 2-minute check could put hundreds back in your pocket
With Medicare Advantage enrollment already on the rise, other analysts predict that, following this announcement, even more Medicare-eligible seniors may elect to join the program in 2025 and 2026. Only time will tell if the $25 billion is used to improve profits or to increase benefits for a growing number of seniors.
For those under 65, U65 Health Insurance enables you to compare and access health insurance offers. This easy, fast and free service makes finding an affordable health insurance policy less stressful, and allows you to search among the leading providers in your area.
Just input your zip code, age range and household income, and U65 Health Insurance will give you a list of the best options for your care.
Building a cushion for retirement
There are several steps you can take to prepare for your own retirement and health care costs in the future. Consider investing as a means to build long-term wealth and cushion your financial future.
With platforms like Acorns, every purchase on your debit or credit card is automatically rounded up to the nearest dollar, with the excess placed into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future, by investing in low-cost ETFs.
The best part? You can get a $20 bonus investment when signing up with a recurring contribution.
Alternative assets, like real estate and gold, can also help you inflation-proof your retirement savings.
Opening a gold IRA with the help of Goldco allows you to invest in gold and other precious metals in physical forms while also providing the significant tax advantages of an IRA.
With a minimum purchase of $10,000, Goldco offers free shipping and access to a library of retirement resources. Plus, the company will match up to 10% of qualified purchases in free silver.
If you’re curious whether this is the right investment to diversify your portfolio, you can download your free gold and silver information guide today.
As for real estate, commercial real estate can offer higher potential returns than residential real estate thanks to its longer lease terms, higher rental rates, and potential for greater appreciation. But direct access to the $22.5 trillion commercial real estate sector has been limited to a select group of elite investors — until now.
First National Realty Partners (FNRP) allows accredited investors to diversify their portfolio through grocery-anchored commercial properties, without taking on the responsibilities of being a landlord.
With a minimum investment of $50,000, investors can own a share of properties leased by national brands like Whole Foods, Kroger and Walmart, which provide essential goods to their communities. Meaning, you’re investing in companies that are more inflation-resistant than many other industries.
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[1]. Health Care Uncovered. “Despite Overpayment Concerns, CMS Finalizes $25 Billion Hike in Medicare Advantage Payments for 2026”
[2]. Health System Tracker. “How does medical inflation compare to inflation in the rest of the economy?”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.