Trump Proposal Boosts Skimpy Insurance Plans, Again Undercutting Obamacare

The Trump administration's new proposal to expand the availability of short-term health insurance plans is seen by many healthcare experts as another attempt to undermine Affordable Care Act (ACA) marketplaces, reports Politico . The measure follows the issuance of a rule encouraging small businesses to find coverage outside ACA marketplaces, with Health and Human Services Secretary Alex Azar saying the latest move "represents an important promise kept by the president." Critics warn the plans offer the appearance of coverage, and enrollees often fail to understand how limited their benefits are until it is too late. Short-term plans maintain lower prices than traditional insurance by not covering pre-existing conditions and certain medical services. The plans usually cap payouts, which could force enrollees with catastrophic illnesses or injuries to pay out-of-pocket for huge medical bills. "It's a quick fix, but ultimately those products don't help consumers who need them," says Georgetown University Professor Kevin Lucia. The short-term plans' backers call them an affordable insurance option for people who do not want robust coverage and have been priced out of the individual market. In January, Trump also proposed expanding the availability of association health plans, in which small businesses and self-employed individuals combine to purchase coverage. These plans are exempt from some ACA regulations, including the requirement to cover a set of health benefits deemed "essential," such as prescription drugs and emergency care. "There won't be a death spiral, but the people who really lose in that scenario are basically middle-class people who are sick," says Michael Miller with Community Catalyst.