Key Components of a Great Healthcare Plan: Understanding the Policies That Shape Healthcare Costs - Image
March 5, 2026

Key Components of a Great Healthcare Plan: Understanding the Policies That Shape Healthcare Costs

Healthcare policy continues to evolve in response to rising medical costs, prescription drug pricing concerns, and consumer demand for transparency.
A great healthcare plan should provide affordable access to care, predictable costs, transparent pricing, and consumer-focused financial support.

Recent healthcare policy proposals focus on several major areas designed to improve affordability and accountability across the healthcare system.
Understanding these components can help individuals, families, and businesses make better decisions when selecting coverage options such as
individual health insurance plans or
group health insurance for businesses.


Table of Contents


What Makes a Great Healthcare Plan?

A strong healthcare system balances affordability, access, transparency, and financial protection.
While insurance coverage is essential, the underlying policies that regulate drug prices, federal subsidies, insurance premiums, and provider transparency also play a major role in determining healthcare costs.

When evaluating coverage options such as individual health insurance or
employer-sponsored health plans, consumers should consider not only the policy benefits but also the broader reforms that influence pricing and accessibility.

Below are four key components that policymakers often identify as foundational elements of an improved healthcare system.


1. Prescription Drug Price Reforms

Prescription medications represent one of the fastest-growing healthcare expenses in the United States.
Drug price reforms aim to reduce these costs by increasing pricing competition and aligning U.S. drug prices with those in comparable countries.

Most Favored Nation Drug Pricing Model

One proposed reform codifies the Most Favored Nation (MFN) pricing model, which would require certain prescription drugs in the United States to be priced similarly to the lowest cost available in other developed countries.

The goal is to prevent Americans from paying significantly higher prices for medications than patients in comparable healthcare systems.

Collaboration with Federal Health Agencies

These reforms would also build on voluntary agreements between drug manufacturers and federal agencies such as the
Department of Health and Human Services (HHS) and the
Centers for Medicare & Medicaid Services (CMS).

Such collaborations could encourage drugmakers to voluntarily lower prices or expand patient access programs.

Expanded Access to Over-the-Counter Medications

Another important component involves expanding access to safe over-the-counter medications.
Increasing OTC availability can reduce healthcare costs by:

  • Encouraging competition among manufacturers
  • Reducing reliance on higher-cost prescriptions
  • Lowering overall insurance and consumer costs

Lower drug costs ultimately benefit both individuals purchasing
individual health insurance coverage
and employers offering
group health insurance benefits.


2. Redirection of Federal Subsidy Dollars to Individuals

Another key component of healthcare reform focuses on how federal subsidy dollars are distributed within the healthcare system.

Rather than restoring expanded Affordable Care Act subsidies, some proposals suggest redirecting federal healthcare funding directly to eligible individuals.

Direct Consumer Funding

Under this approach, individuals could receive federal healthcare funds directly instead of routing those funds through insurance companies.
This structure aims to give consumers greater control over how healthcare dollars are spent.

Potential Role of Health Savings Accounts (HSAs)

One possible mechanism for distributing these funds would be through
Health Savings Accounts (HSAs). HSAs allow individuals to save pre-tax dollars to pay for qualified medical expenses.

Although eligibility rules and funding structures remain undefined, directing subsidies into HSAs could help consumers cover costs such as:

  • Deductibles
  • Prescription medications
  • Preventive care services
  • Out-of-pocket medical expenses

For individuals evaluating coverage options, these reforms could complement traditional insurance solutions like
major medical health plans.


3. Insurance Premium Reduction Measures

Rising health insurance premiums remain a major concern for both individuals and employers. Several proposed policy changes aim to reduce premiums by addressing underlying cost drivers in the insurance market.

Redirecting Subsidies from Carriers to Consumers

One proposed reform would eliminate certain supplemental subsidy payments to insurance companies and instead direct those funds to consumers.

The intention is to increase consumer purchasing power and encourage competition among insurers.

Fully Funding Cost-Sharing Reductions (CSRs)

Cost-Sharing Reductions (CSRs) help lower out-of-pocket expenses for lower-income individuals enrolled in certain ACA plans.

Fully funding CSRs could reduce premiums for silver-tier marketplace plans by approximately
10% or more, according to Congressional Budget Office projections.

Eliminating PBM Rebates and Kickbacks

Pharmacy Benefit Managers (PBMs) negotiate drug prices between pharmaceutical manufacturers, pharmacies, and insurance companies.

Some policymakers argue that PBM rebate structures can inflate drug list prices and contribute to higher insurance premiums.

Eliminating rebate kickbacks could help:

  • Reduce prescription drug costs
  • Improve pricing transparency
  • Lower overall insurance premiums

Lower premiums are particularly beneficial for small businesses offering
group health insurance plans.


4. Transparency and Accountability Requirements

Transparency is another major pillar of healthcare reform. Increasing access to pricing information allows consumers to make more informed healthcare decisions.

Plain English Insurance Standard

One proposed initiative introduces a “Plain English” insurance standard that requires insurers to clearly disclose important information such as:

  • Insurance company profit margins
  • Claim denial rates
  • Coverage limitations
  • Policy structure and benefits

This transparency would help consumers better understand the policies they purchase through options like
individual health insurance coverage.

Hospital and Physician Price Transparency

Another proposal requires hospitals and physicians participating in Medicare or Medicaid to publicly post pricing for medical services.

The goal is to enable true comparison shopping in healthcare — similar to how consumers compare prices in other industries.

Greater price transparency may help patients:

  • Compare healthcare providers
  • Identify lower-cost facilities
  • Understand expected medical costs before treatment

This information can also help employers manage healthcare spending when designing
employee health insurance benefits.


How These Components Impact Consumers

When combined, these four components aim to create a healthcare system that is more consumer-focused and financially sustainable.

Potential benefits include:

  • Lower prescription drug prices
  • Reduced health insurance premiums
  • More control over healthcare spending
  • Greater transparency in medical pricing

For individuals and businesses navigating coverage options, understanding these policies can make it easier to evaluate healthcare plans and determine which options provide the best long-term value.

If you’re exploring coverage options, you can learn more about:


Conclusion

Building a great healthcare system requires addressing several complex factors, including prescription drug pricing, insurance subsidies, premium costs, and transparency in healthcare pricing.

The key components discussed above highlight the types of policy changes designed to improve affordability, increase competition, and empower consumers to make better healthcare decisions.

As healthcare policy continues to evolve, individuals and businesses should stay informed about how these changes may affect insurance options and long-term healthcare costs.

To learn more about available coverage options or to compare plans tailored to your needs, visit our
health insurance services or explore
group insurance solutions.