Everyone is abuzz with President Trump’s swift and firm changes to tariffs worldwide. Tariffs, often seen as a tool for protecting domestic industries, can have far-reaching consequences beyond their intended targets. One area that may feel the impact is medical insurance.

Tariffs will directly affect the cost of medical supplies. Many medical devices and pharmaceutical ingredients are imported. Tariffs on these goods can drive up their costs, which may trickle down to healthcare providers and, ultimately, to patients. At this time, Forbes.com reports that commonly used drugs such as the popular Ozempic are currently exempt from the tariff increases, however “analysts and Trump have warned that future tariffs will likely target imported medicines”.

Another area of disruption is within the supply chain. Tariffs can disrupt the global supply chains that healthcare relies on. Delays or shortages in medical supplies could lead to higher operational costs for hospitals and clinics, potentially affecting the coverage and pricing of medical insurance.

Lastly, tariffs can contribute to broader economic instability. If businesses face higher costs and consumers have less disposable income, the demand for comprehensive insurance packages might decline. This could lead to changes in the types of policies insurers offer and what type of plans are desirable to the consumer.

While tariffs aim to bolster domestic industries, their unintended effects on sectors like healthcare highlight the interconnectedness of the global economy. For medical insurance, the challenge lies in balancing these economic shifts while continuing to provide accessible and affordable coverage.