Morning Briefing
Summaries of health policy coverage from major news organizations
Trump Rule Will Allow Small Employers To Use Tax-Free Accounts To Help Workers Pay For Health Insurance
The Hill: Trump Officials Issue New Rule Aimed At Expanding Health Choices For Small Businesses
The Trump administration on Thursday unveiled a rule aimed at expanding health insurance options for small businesses and others, the latest action stemming from President Trump’s health care executive order in 2017. The White House framed the move as part of its efforts to expand health care choices for people now that efforts to repeal ObamaCare have come up short. (Sullivan, 6/13)
The Associated Press: White House Expands Health Accounts Aimed At Small Firms
The tax-free individual accounts are called "health reimbursement arrangements," or HRAs, and starting next year employees will be able to use them to buy their own individual health insurance plans. Employers that offer regular workplace coverage can also set up another type of HRA account — limited to $1,800 a year — that will allow workers to get additional benefits such as dental and vision care. This second type of account can also be used to purchase lower-cost, short-term insurance that comes with limited benefits and doesn't have to cover pre-existing medical conditions. (Alonso-Zaldivar, 6/13)
Modern Healthcare: Employers Can Fund Workers' Individual Plans Under New Trump Rule
Employers will be able to hand their workers a chunk of tax-sheltered health reimbursement money and send them off to buy an individual health plan under a controversial rule issued by the Trump administration Thursday. The final rule, which takes effect Jan. 1, 2020, will prompt an estimated 800,000 large and small employers to fund individual coverage through health reimbursement accounts (HRAs) for about 10 million workers, nearly 800,000 of whom would be newly insured. (Meyer, 6/13)
The Wall Street Journal: Trump Administration Expands Pre-Tax Accounts For Health Insurance
Conservatives and employers have been pressing for the change, which the Trump administration said will increase consumer choice. The administration said the rule is expected to expand coverage by 2029 to an estimated 800,000 who were previously uninsured. According to the rule, some people could lose insurance if employers drop coverage or the influx of new consumers causes premiums on the individual market to rise. The rule is also expected to lead to a $51.2 billion drop in federal tax revenue between 2020 and 2029. (Armour, 6/13)
Meanwhile, in other health law news —
Politico Pro: Verma Warned Against Obamacare Changes In Confidential Memo
A top Trump health official last summer privately warned that a trio of regulatory changes to Obamacare weighed by the administration could immediately push over a million people off coverage and disrupt the insurance markets, according to an internal memo obtained by POLITICO. CMS Administrator Seema Verma projected that Obamacare sign-ups would drop 10 percent in 2020 if officials followed through on proposals ending automatic reenrollment, banning a “silver loading” practice employed by insurers to keep premiums low and trimming the law’s subsidies. (Cancryn, 6/14)
