- Potential Expansion of Alternative Health Care and Employee Benefit Arrangements: With the new presidential administration, a potential expansion of options for health care and employee benefit arrangements, especially for small employers, may be forthcoming. Changes to current standards under ERISA and other federal laws governing employee health care and benefit arrangements could impact the health insurance marketplace.
- Growth in Health Saving Accounts (HSAs): With the potential for higher health insurance costs, there will likely be an increased focus on utilizing HSAs as a way for individuals to save on taxes and offset out-of-pocket medical expenses. More employers may adopt HSA-compatible high-deductible health plans to lower premium costs.
- Greater Consumer Demand for Personalized Coverage: We expect the trend toward consumer-directed health plans will continue, with insurers offering more flexible options that allow individuals to tailor coverage based on their personal health needs. With the rise of artificial intelligence (AI), data analytics, and Internet of Things (IoT), insurers could have the ability to offer more customized policies that reflect an individual’s risk profile, lifestyle, and preferences.
- Diversification of Policies: Insurers will also continue to diversify their portfolios to include more wellness programs, telemedicine services, and other value-added services as they look to differentiate themselves and capture more market share in a competitive environment. Additionally, the popularity of on-demand insurance, particularly for short-term coverage like travel or rental insurance, will likely continue to grow. Insurers may explore offering more granular, micro-insurance products that allow consumers to purchase coverage for specific, temporary needs (e.g., event insurance, smartphone protection).
- Emerging Coverage for Extreme Weather-Related Illnesses: The increasing frequency of extreme weather events, such as wildfires, storms, and floods, could have direct health impacts, such as respiratory issues from smoke inhalation, injuries from severe storms, and heat-related illnesses. Insurers may expand coverage to include health risks linked to these natural disasters, with an emphasis on preventive care and post-disaster mental health services.
Moreover, health insurers may develop new products aimed at addressing these emerging health issues, such as vector-borne diseases (e.g., Zika, Lyme disease) or mental health challenges stemming from prolonged exposure to natural disasters.
About the Authors:
Fred E. Karlinsky, who is chair of Greenberg Traurig’s Insurance Regulatory and Transactions Practice Group, has over 30 years of experience representing insurance companies, reinsurers, and a wide array of related entities on regulatory, transactional, corporate, and governmental affairs matters. He is a recognized authority on national insurance regulatory and compliance issues. Fred is also an adjunct professor at the Florida State University College of Law, where he chairs the board of visitors.
Timothy F. Stanfield, a shareholder with the Florida Government Law & Policy Practice, represents a wide number of private and public-sector clients before the Florida legislature, cabinet, and state agencies. Tim’s practice is largely focused on regulated industries, including insurance, land use, and alcoholic beverages, including addressing ‘tied house evil’ issues. He also represents local governments, trade associations, and clients participating in Florida’s procurement process.
Christian Brito is an of counsel who focuses his practice on national insurance regulatory and compliance matters. He represents a wide variety of entities in the insurance industry, including insurers, reinsurers, managing general agencies, producers, third-party administrators, and claims companies, with regulatory, transactional, corporate, and governmental affairs matters.