Trump Signs Executive Order to Change Health Insurance Market
Today, President Trump signed an executive order directing members of his cabinet to take steps that will drastically alter the health insurance marketplace, including expanding the use of association health plans and short-term health insurance.
The Administration took these steps as a result of Congress’ failed attempts to pass any legislation related to health reform. President Trump said the aim of this executive order is to reduce costs for consumers and to reduce the health insurance burden on small business owners.
“The cost of the Obamacare has been so outrageous, it is absolutely destroying everything in its wake,” President Trump said during a signing ceremony at the White House. He added that this order was “only the beginning,” and suggested that he feels Republicans will soon be able to pass the Medicaid block-granting repeal law that failed last month.
Association health plans allow groups of small businesses to pool together and purchase health insurance plans for their employees across state lines. Additionally, the executive order would allow for insurance companies to offer bare-bones plans that are not regulated by the ACA.
Furthermore, the executive order calls for expanding the use of short-term health insurance plans in order to allow for insurance companies to offer bare-bones plans that are not regulated by the ACA. This will give insurers the power to sell these “short term” plans with a term of 1 year, instead of the 3 month limit that is currently allowed under the ACA.
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