Trump Plan: Less-Comprehensive Health Plans at Lower Cost
Tuesday, 20 Feb 2018 02:15 PM

The Trump administration Tuesday cleared the way for a lower-cost, limited alternative to the comprehensive individual medical plans required under former President Barack Obama's health law.

Proposed regulations from the administration would allow health insurers to sell individual consumers so-called "short-term" policies that can last up to 12 months, have fewer benefits, and lower premiums.

The plans would come with a disclaimer that they don't meet the Affordable Care Act's consumer protections, such as guaranteed coverage, or the requirement to offer robust benefits. Insurers could also charge consumers more if an individual's medical history discloses health problems.

Nonetheless, administration officials said they believe the short-term coverage option will be welcomed by people who need individual coverage but don't qualify for the ACA's income-based subsidies and face paying the full cost of their premiums.

"We need to be opening up more affordable alternatives," Health and Human Services Secretary Alex Azar told reporters. "It's one step in the direction of providing Americans with alternatives that are both more affordable and more suited to individual and family circumstances."

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One major health insurance company, United Healthcare, is already positioning itself to market short-term plans. But others in the industry see them as a niche product for people in life transitions, like being in-between jobs, moving to another state, or retiring before Medicare kicks in. Consumer advocates say patients have to read the fine print carefully to make sure the plan will cover their medical bills.

The administration's proposal will be open for public comment for 60 days, and Verma said she hopes the new rules will be finalized as soon as possible. However, for 2018, short-term coverage won't count as qualifying coverage under the Obama health law, which means consumers with such plans would legally be considered uninsured, putting them at risk of fines. The requirement that most Americans have coverage has been repealed, effective next year.

The proposal to expand short-term plans follows another administration regulation that would allow groups within an industry to offer "association" health plans also exempt from ACA requirements.

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https://www.newsmax.com/newsfront/trump-...2/20/id/844398/