Last week, President Trump signed an executive order on health care, to spark a change of momentum with the Affordable Care Act. Taking this action increases health care options for millions of Americans. Having alternatives to Obamacare plans will help make things more affordable. How does that impact you? Let’s review the changes.
-
The order directs the Secretary of Labor to consider expanding access to Association Health Plans (AHPs), which could allow employers to join forces across state lines.
-
Expanding coverage through a low-cost, short-term health insurance plan beyond the 91-day restriction they now have.
-
Allowing medical expense reimbursement agreements (HRAs) to be used as a tax-free vehicle for healthcare expenses, including deductibles and copayments. This will also include reimbursement of health insurance premiums for non-group coverage.
-
The Trump administration will cut $ 7 billion in cost-sharing reduction payments to insurance companies this year.
Note: The cost-sharing reduction is for out-of-pocket costs, not monthly premiums. Those who qualify for the monthly premium subsidy will remain intact.
It is quite possible that this could alter the direction of the Affordable Care Act. Many are seeing massive increases and more out-of-pocket expenses. They look for alternatives, but they are drying up.
Many young people need lower-cost health insurance for more than 90 days, the current limit for short-term health plans. They cannot pay premiums on the Exchange (or directly through a participating carrier). Many of them do not qualify for a tax credit because income is high enough, even at $ 25,000 a year, to be eligible for government assistance.
Others work for an employer who is willing to help but is unable to offer group health insurance for some reason. With some help from the employer, it will be more affordable for your employees and will build company loyalty. This is good because employers compete for good talent.
The cost-sharing reduction grant is a political debate about whether or not it was constitutional for President Obama to sign it as an executive order after the passage of the Affordable Care Act. Either way, you think, this grant was using taxpayer dollars that the IRS couldn’t track. Even with an IRS audit. It was in effect for three years and no one has tried to reconcile it if someone didn’t count on your income for the cost-sharing credit.
Ultimately, we are all working to make health care coverage easier and more affordable. The Affordable Care Act began to address it, but it did not end. One can hope that what follows after this executive order will help to get closer to that goal.