The Trump Administration is selling you junk.
This week, the Trump Administration rolled out their latest attack on access to affordable, quality health care with a new proposal to allow insurance companies to sell junk plans that deny coverage for essential health benefits such as trips to the emergency room, prescription drugs, or maternity care; it will also allow insurance companies to discriminate against people with pre-existing conditions once again. This proposal will undermine the ACA’s consumer protections and increase health care costs for millions of Americans currently benefiting from the law. Check out news coverage of this proposed rule below, all of which make it clear that the Trump Administration is selling junk that will destabilize insurance markets and raise insurance costs for millions:
New York Times Editorial: Trump Tries to Kill Obamacare by a Thousand Cuts
Vox: Trump’s quiet campaign to bring back preexisting conditions
Associated Press: Trump plan: Less health insurance for lower premiums
USA Today: Trump proposes 12-month insurance plans that don't cover people, issues Obamacare requires
Newsweek: Trump's Short-Term, Limited Health Insurance Proposal Is The Latest Obamacare Setback
NPR: Trump Administration Wants To Let Insurers Offer Plans With Fewer Benefits
Washington Post: Short-term health plans skirting ACA-required benefits and protections to be expanded
New York Times Editorial: Trump Tries to Kill Obamacare by a Thousand Cuts
“The latest move in that [Affordable Care Act] demolition derby came this week, when officials proposed giving insurance companies more leeway to sell junk health plans.
“Not mentioned in the department’s talking points is the fact that these policies often do not cover things like mental health services, substance abuse treatment, cancer drugs and maternity care. As a result, people who buy such skimpy plans could end up being hit with exorbitant bills if they actually need medical care.”
“This would not be devastating to most of the people who use exchanges, because they receive federal subsidies that limit how much they have to pay. But it could really hurt middle-class families who earn too much to qualify for government assistance (about $82,000 for a family of three) and are already facing big premium increases. People in this group would have the terrible predicament of spending a lot of money buying health insurance or taking a chance by buying a skimpy temporary plan, hoping that nobody in the family gets sick or injured.”
“Not mentioned in the department’s talking points is the fact that these policies often do not cover things like mental health services, substance abuse treatment, cancer drugs and maternity care. As a result, people who buy such skimpy plans could end up being hit with exorbitant bills if they actually need medical care.”
“This would not be devastating to most of the people who use exchanges, because they receive federal subsidies that limit how much they have to pay. But it could really hurt middle-class families who earn too much to qualify for government assistance (about $82,000 for a family of three) and are already facing big premium increases. People in this group would have the terrible predicament of spending a lot of money buying health insurance or taking a chance by buying a skimpy temporary plan, hoping that nobody in the family gets sick or injured.”
“If the administration were actually serious about reducing health care costs, it would try to improve the A.C.A., not dismantle it.”
Vox: Trump’s quiet campaign to bring back preexisting conditions
“The Trump administration is quietly dismantling the Affordable Care Act, taking a series of regulatory steps that will make it easier for insurance companies to sell plans that exclude patients with preexisting conditions or don’t cover basic services like maternity care, mental health treatment, and prescription drugs.”
“Republicans weren’t able to repeal Obamacare in Congress. Now the Trump administration appears to be settling for the second-best thing: weakening Obamacare’s insurance regulations, changes that will hurt Americans who are older and sicker while benefiting the young and the healthy.”
“These plans are likely to attract young and healthy consumers, leaving behind a pool of older and sicker patients in the Obamacare markets and driving up the prices there.”
“Already in recent weeks, the Trump administration has shown little interest in enforcing Obamacare’s guarantee that healthy and sick people get access to the same type of health insurance.”
“…But sicker people will end up paying the price of those healthy people exiting the Obamacare marketplace.”
“Republicans weren’t able to repeal Obamacare in Congress. Now the Trump administration appears to be settling for the second-best thing: weakening Obamacare’s insurance regulations, changes that will hurt Americans who are older and sicker while benefiting the young and the healthy.”
“These plans are likely to attract young and healthy consumers, leaving behind a pool of older and sicker patients in the Obamacare markets and driving up the prices there.”
“Already in recent weeks, the Trump administration has shown little interest in enforcing Obamacare’s guarantee that healthy and sick people get access to the same type of health insurance.”
“…But sicker people will end up paying the price of those healthy people exiting the Obamacare marketplace.”
Associated Press: Trump plan: Less health insurance for lower premiums
“The proposed regulations would expand an alternative to the comprehensive medical plans required under former President Barack Obama's health law. Individuals could buy so-called "short-term" policies for up to 12 months. But the coverage would omit key consumer protections and offer fewer benefits, making it unattractive for older people or those with health problems.”
“Tuesday's proposal follows another administration regulation that would allow groups to offer ‘association’ health plans also exempt from ACA requirements to small businesses and sole proprietors. Having failed to repeal ‘Obamacare,’ Trump is now chipping away at it through regulations and waivers.”
“Tuesday's proposal follows another administration regulation that would allow groups to offer ‘association’ health plans also exempt from ACA requirements to small businesses and sole proprietors. Having failed to repeal ‘Obamacare,’ Trump is now chipping away at it through regulations and waivers.”
USA Today: Trump proposes 12-month insurance plans that don't cover people, issues Obamacare requires
“The Trump administration proposed Tuesday that people be allowed to buy short-term insurance plans that don't cover the benefits — or people — required to be covered by the Affordable Care Act (ACA)..”
“The plans could also pull more healthy people out of the pool of people signing up for the ACA, and that could lead to higher premiums for those who remain and aren't eligible for subsidies.”
“The trade group America's Health Insurance Plans (AHIP) said it was still reviewing the proposal, but spokeswoman Kristine Grow said members ‘remain concerned that expanded use of short-term policies could further fragment the individual market, which would lead to higher premiums for many consumers, particularly those with pre-existing conditions.’”
“The plans could also pull more healthy people out of the pool of people signing up for the ACA, and that could lead to higher premiums for those who remain and aren't eligible for subsidies.”
“The trade group America's Health Insurance Plans (AHIP) said it was still reviewing the proposal, but spokeswoman Kristine Grow said members ‘remain concerned that expanded use of short-term policies could further fragment the individual market, which would lead to higher premiums for many consumers, particularly those with pre-existing conditions.’”
Newsweek: Trump's Short-Term, Limited Health Insurance Proposal Is The Latest Obamacare Setback
“Americans may soon be able to buy inexpensive short-term, limited-coverage health insurance, thanks to a new rule proposed by the Trump administration. But critics argue the suggestion is inadequate "junk insurance," and just a further attempt to dismantle Obamacare.”
“The potential rule change is the result of a executive order signed by President Donald Trump in October, which aimed to increase access to cheaper but less comprehensive health insurance alternatives to those on the Affordable Care Act exchanges. Experts say the rule change could decimate the markets created by the Affordable Care Act, as the cheaper alternatives will likely appeal to healthy people, drawing them away from the Obamacare exchanges and increasing premiums for Americans who remain.”
“‘This will have a significant negative effect on those with pre-existing conditions,’ Linda Blumberg, a fellow with the Health Policy Center at the Urban Institute, told Newsweek. A key feature of Obamacare was that it prohibited insurers from charging higher premiums to those with so-called pre-existing conditions—a rule that would not apply to the short-term plans. “This is a way for the Trump administration to push the cost of healthcare onto those with pre-existing problems,’ Blumberg added.”
“The proposal would reverse an Obama-era decision that capped short-term plans at three months in an effort to move more Americans into Affordable Care exchanges.”
“‘This is a recipe for a bad outcome,’ said Blumberg.”
“The potential rule change is the result of a executive order signed by President Donald Trump in October, which aimed to increase access to cheaper but less comprehensive health insurance alternatives to those on the Affordable Care Act exchanges. Experts say the rule change could decimate the markets created by the Affordable Care Act, as the cheaper alternatives will likely appeal to healthy people, drawing them away from the Obamacare exchanges and increasing premiums for Americans who remain.”
“‘This will have a significant negative effect on those with pre-existing conditions,’ Linda Blumberg, a fellow with the Health Policy Center at the Urban Institute, told Newsweek. A key feature of Obamacare was that it prohibited insurers from charging higher premiums to those with so-called pre-existing conditions—a rule that would not apply to the short-term plans. “This is a way for the Trump administration to push the cost of healthcare onto those with pre-existing problems,’ Blumberg added.”
“The proposal would reverse an Obama-era decision that capped short-term plans at three months in an effort to move more Americans into Affordable Care exchanges.”
“‘This is a recipe for a bad outcome,’ said Blumberg.”
NPR: Trump Administration Wants To Let Insurers Offer Plans With Fewer Benefits
“The Trump administration wants to allow insurance companies to offer more policies that have limited health benefits and that can reject customers if they have pre-existing medical conditions.”
“Short-term plans don't have to include the minimum essential health benefits — such as mental health care or prescription coverage — that have to be included in an ACA-compliant policy. And insurance companies can refuse to offer coverage to someone with a pre-existing medical condition, or charge people more money if they're likely to need more care.”
“The American Cancer Society's lobbying arm said in a statement that it worries that the new rules could leave people vulnerable to unexpected health care costs. The new rules ‘can make these policies inexpensive, they also create plans with potentially inadequate coverage.’”
“Short-term plans don't have to include the minimum essential health benefits — such as mental health care or prescription coverage — that have to be included in an ACA-compliant policy. And insurance companies can refuse to offer coverage to someone with a pre-existing medical condition, or charge people more money if they're likely to need more care.”
“The American Cancer Society's lobbying arm said in a statement that it worries that the new rules could leave people vulnerable to unexpected health care costs. The new rules ‘can make these policies inexpensive, they also create plans with potentially inadequate coverage.’”
Washington Post: Short-term health plans skirting ACA-required benefits and protections to be expanded
“The Trump administration is proposing to significantly broaden Americans’ ability to rely on short-term health plans that do not comply with the Affordable Care Act’s benefits requirements and consumer protections.”
“If the rule is finalized, consumers would be able to buy — for just under a year at a time — short-term plans that do not have to include the Affordable Care Act’s 10 required health benefits and that can deny coverage or charge more to some customers who are in poor health.”
TPM: How The Trump Admin Is Using Junk Health Plans To Undermine Obamacare“If the rule is finalized, consumers would be able to buy — for just under a year at a time — short-term plans that do not have to include the Affordable Care Act’s 10 required health benefits and that can deny coverage or charge more to some customers who are in poor health.”
“The department’s move is just the latest in a lengthy series of administrative actions that have destabilized and chipped away at the Affordable Care Act, including repealing of the individual mandate, cutting the length of open enrollment in half and slashing funding for outreach and assistance, making it easier for states to cull their Medicaid enrollees, and cutting off CSR subsidies that offset the cost of insuring low-income individuals.”
“But health care experts and economists say the plans—which can charge people higher premiums if they have a pre-existing condition, reject them altogether, and refuse to cover basics like emergency room visits and prescriptions drugs—are mainly aimed at enticing people out of Obamacare’s individual market.”
“Unsubsidized patients who have too many health problems to consider a skimpy short-term plan may be the most harmed by the rising premiums that will result. And by HHS’ own estimate, taxpayers will take a hit as well, as the ACA’s tax credits will have to increase for millions of people in the individual market as premiums rise.”
“But health care experts and economists say the plans—which can charge people higher premiums if they have a pre-existing condition, reject them altogether, and refuse to cover basics like emergency room visits and prescriptions drugs—are mainly aimed at enticing people out of Obamacare’s individual market.”
“Unsubsidized patients who have too many health problems to consider a skimpy short-term plan may be the most harmed by the rising premiums that will result. And by HHS’ own estimate, taxpayers will take a hit as well, as the ACA’s tax credits will have to increase for millions of people in the individual market as premiums rise.”