On October 12th, President Trump signed a health care executive order that requests his administration to develop policies to increase health care industry competition and consumer choice while improving quality and lowering prices. However, it could also shatter The Affordable Care Act (Obamacare) by providing a means for younger, healthier individuals to opt out from the exchanges.
The President is asking the Department of Labor to find ways to make it easier for small businesses and perhaps individuals to form nationwide associations to buy health insurance.
Trump’s Health Care Executive Order potentially could:
- allow employers in the same industry to offer group coverage across state lines.
- provide a much a wider range of policies.
- lower costs to consumers (employers and employees).
- offer consumers the ability to purchase short-term policies that do not need to comply with pre-existing condition protection.
- broaden health reimbursement arrangements (aka HRA’s) allowing employers. to give workers money to buy their own coverage.
- free the association health plans from several Obamacare regulations so that they can operate more like large corporations. These could include:
- requirement to provide comprehensive policies that cover prescription drugs, mental health and substance abuse
- deny coverage to the group
- set rates based on the medical history of those in the group
- exclude employees or develop premiums based on health conditions
- expand the use of short-term insurance plans
- exclude those with pre-existing conditions
- base rates on consumers’ health background
- offer plans with lower premiums with less benefits.
- offer less comprehensive coverage
- create plans that reduce and/or eliminate state oversight.
- pull younger and healthier customers away from Obamacare.
- increase premiums for sicker people left in the exchanges.
May take 6 months or more to implement Trump’s health care Executive Order
The order could leverage the buying power of millions of Americans to form big health care pools. However, there are many who feel it is not going to solve the problem as it only effects a tiny number of people and will not do anything for workers that are currently part of the exchanges and are not members of a franchise or trade association.
It is not known how the agencies within the Trump administration will change the current regulations at this time. Health care plans sponsored by trade organizations already exist. We will continue to watch as this new executive order begins to take shape and let you know what you need to know to keep competitive and stay ahead of the regulations. Please contact us with any questions or concerns you may have.
Our Proprietary Programs have been helping Employers achieve what Trump is proposing. HRB Solutions Inc. has been helping employers participate in large pools with economies of scale discounts for over 5 years!
Here are a few other resources that will help you understand more about this news of the day.