President Donald Trump said this week that he plans to sign an executive order that is aimed at expanding access to loosely regulated health insurance plans.
The order would be a move that could give consumers more coverage options but also destabilize Obamacare markets.
It is expected to direct three agencies to rewrite federal rules to allow trade associations. Those so-called association health plans would be exempt from some of Obamacare’s strict regulations and could be sold across state lines.
On Tuesday, Trump said, “They will be able to buy, they’ll be able to cross state lines, and they will get great competitive health care, and it will cost the United States nothing. With Congress the way it is, I decided to take it upon myself.”
Trump is planning to sign the order on Thursday. Trump is attempting to follow through on his repeated calls to open up the sale of health insurance across state lines. Republican Senators Rand Paul and Mike Enzi have long associated health plans as a way to lower insurance costs and give people more options.
Cori Uccello, a senior health fellow at the American Academy of Actuaries, said, “It would deteriorate the risk pool, lead to increased premiums, more instability and potentially make insurers have to make decisions on whether they’re going to continue to participate.”
Obamacare’s patient protections, which include a ban on charging people more based on their health status helped sink multiple Republican efforts to repeal and replace the law.
Neil Trautwein, the vice president for health policy at the National Retail Federation also said, “Any effort to jump-start this issue and provide more competition in the states, in the individual and small group market, is welcome.”
What are your thoughts? Do you think Trump’s executive healthcare order will be beneficial in the long run?
Please feel free to leave a comment below!