Trump Touts ‘Massive’ Savings From Association Health Plans, But Critics Still Say They’re Junk Insurance
The Trump administration announced the finalized rule yesterday that would give small businesses access to insurance options like those available to large companies and let them skirt some of the health law's requirements. While President Donald Trump said the rule will save people "massive amounts of money," Democrats and others in the health industry say the insurance plans are "junk" and they will further destabilize the marketplace.
The New York Times:
New Trump Rule Rolls Back Protections Of The Affordable Care Act
A sweeping new rule issued Tuesday by the Trump administration will make it easier for small businesses to join forces and set up health insurance plans that circumvent many requirements of the Affordable Care Act, cutting costs but also reducing benefits. President Trump, speaking at a 75th-anniversary celebration of the National Federation of Independent Business, said the new rule would allow small businesses to “escape some of Obamacare’s most burdensome mandates” by creating new entities known as association health plans. (Pear, 6/19)
The Washington Post:
Trump Administration Expands Use Of Health Plans That Skirt ACA Consumer Protections
The rules, throwing the doors wide open to a type of insurance known as association health plans, accomplish through executive power what congressional Republicans have tried and failed to write into law over the past two decades. Announced Tuesday morning by Labor Secretary Alexander Acosta, the final rules expanding access to such health plans come eight months after President Trump directed the government to foster alternatives to the ACA’s insurance provisions and five months after the Labor Department proposed a draft version. They are the most recent piece in the administration’s jigsaw efforts to undercut elements of the ACA through its own powers after the Republican-led Congress failed last year to repeal a broad swath of the sprawling 2010 statute. (Goldstein, 6/19)
The Wall Street Journal:
New Trump Administration Rule To Expand Access To Health Plans Without ACA Protections
The rule makes it far easier for small businesses and self-employed individuals to band together and obtain “association health plans” for themselves and their employees. Many of the plans will be subject to the same rules as larger employers, which means they won’t have to provide comprehensive benefits, such as maternity services, prescription drugs, or mental health care, mandated under the ACA. That is expected to lead to lower prices for people who enroll. “You may be able to buy a policy that’s several thousand dollars cheaper,” said Sen. Lamar Alexander (R., Tenn.), said in an interview before the rule’s release. “This is the most promising proposal for quality insurance for self-employed people who might make $60,000 to $70,000 but get no subsidies.” (Armour, 6/19)
Kaiser Health News:
Administration Eases Way For Small Businesses To Buy Insurance In Bulk
The new regulations eliminate the geographical restriction for similar employers, allowing, for example, family-owned auto-repair shops in multiple states to offer one big health plan, said Christopher Condeluci, a health benefits lawyer and former Senate Finance Committee aide. The rules, to be implemented in stages into next year, also allow companies in different industries in the same region to form a group to offer coverage — even if the only reason is to provide health insurance. (Hancock and Appleby, 6/19)
Modern Healthcare:
Trump Administration Finalizes Rule To Expand Association Health Plan Access
As many as 4 million people will gain coverage under the new plan offerings in the coming years, according to Acosta. That includes 400,000 people who previously did not have insurance coverage, he said. The government's estimates are in line with Avalere Health's prediction that as many as 4.3 million people will leave the individual and small-group insurance markets to enroll in association health plans over the next five years. (Dickson, 6/19)
The Hill:
Trump Officials Move To Expand Non-ObamaCare Health Plans
Democrats strongly oppose the move as allowing for “junk” insurance that will not meet people’s needs and that will cause premiums to rise for those remaining in ObamaCare plans, once some healthier people are siphoned off into the new plans. Secretary of Labor Alex Acosta on Tuesday said the new plans “will offer more health care coverage options at a better price.” (Sullivan, 6/19)
Politico:
Trump’s New Health Insurance Rules Expected To Hurt Obamacare
Critics warn the steps will further destabilize wobbly Obamacare markets by siphoning off younger and healthier customers, who are more likely to favor cheaper plans that cover less. The law’s insurance markets have already been beset by skyrocketing premiums and diminishing competition, problems that are likely to grow worse if the customer base becomes even smaller and sicker. “These plans weaken protections for Americans with pre-existing conditions,” Senate Minority Leader Chuck Schumer said. “No single group that represents physicians, patients, hospitals or nurses is supportive. Not one." (Demko and Cancryn, 6/19)
Chicago Tribune:
Trump Health Plan Change May Ease Insurance Costs For Some; Critics Fear It Could Weaken Obamacare
Some groups of workers are excited about the expansion of association plans, saying they could be a less expensive option for consumers who’ve faced rising prices and dwindling options on Illinois’ Obamacare exchange in recent years. On average, insurers in the state increased rates by 16 to 37 percent for the lowest-priced plans on the exchange this year, and in 13 Illinois counties only one insurer offers plans on the exchange. (Schencker, 6/19)
Bloomberg:
Trump To Let Small Businesses Offer Cheaper Health Plans
Twenty six groups including the American Diabetes Association, the American Heart Association, Consumers Union and the National Alliance on Mental Illness issued a statement opposing the rule. “Consumers will pay much more for comprehensive coverage or end up with substandard plans that leave both their health and financial security at risk,” the groups said. State insurance regulators, meanwhile, have warned that the plans could open the door to fraud and abuse, citing a history of unscrupulous practices as well as insolvencies in past iterations of such plans. They’ve said there should be a strong regulatory role reserved for state officials. (Tracer, 6/19)
