President Trump revised Obama's medical reform in five ways
First, the order requires the Minister of Labour to expand the chances of obtaining an association health plan. These policies apply to trade groups, small businesses and other associations. This order expands the types of groups that can form these health plans. It also prohibits them from refusing to insure or charging more fees to those who have the conditions. It will allow people who participate in the association's health plan to purchase policies in other states.
The order fulfilled a campaign commitment to allow health insurers to sell insurance policies across states. Each state has specific regulations. This makes national insurance companies expensive to operate in different states. Therefore, the five companies provide services to half of the policyholders. Increased competition will reduce the monopoly power of these companies and reduce costs.
But administrative orders may have the opposite effect. Under current policies, large companies are the only companies that have the ability to operate across states. If doing so is easier for them, they will raise the price. Even more frightening is that the new policy will not be strictly regulated as before. The government will waive their compliance with the Affordable Care Act regulations and national licenses.
Therefore, the plan does not have to provide the 10 basic benefits of the ACA. They can re-import life and annual limits. These plans seem to have been in the early 1990s, leaving $123 million in unpaid claims to 398,000 people.
If this rule goes into effect, it may keep people away from the insurance provided by the exchange. They tend to have low-cost affiliate programs, even if they offer less benefits. Plans that comply with anti-corruption laws will be plagued by the most ill people. It's like asking auto insurance companies to insure only those who have a car accident. This will force insurance companies to raise interest rates or exit the exchange.
The order may also affect companies that have a company sponsorship program. ACA allows employers to choose an insurance plan from any state. This is not important because ACA requires all plans to have the same benefits. But employers may flock to new plans because the new plan has lower costs and less revenue.
Second, Trump’s executive order requires the Minister of Labor to relax restrictions on short-term health plans. Under Obama's medical reform, these policies may last no more than three months. Trump wants them to last for 12 months.
In October 2018, the government allowed the use of ACA subsidies to purchase such programs. States must submit a “1332 waiver” indicating that people still have access to at least one comprehensive health plan. States must also ensure that coverage does not fall. This will weaken the coverage of most people and they will tend to be cheaper.
Third, the order requires the Minister of Labor to allow employers to use the pre-tax dollar to pay for “health compensation arrangements”. This helps workers pay for any medical expenses. According to Obama's medical reform, workers can only pay for medical policies that meet their requirements.
Fourth, the doctors commissioned a study to find ways to limit the merger of insurance and hospital industry.
Fifth, it guides agencies to find more ways to increase competition and choice in the healthcare sector. On July 7, 2018, the Trump administration announced that it would suspend the payment of at least $10.4 billion in "risk adjustment" payments to insurance companies. Since 2013, payments made by the government have alleviated the blows suffered by insurance companies, which account for an unfair proportion of unhealthy registrations. For example, insurance companies may experience this situation in states with a high proportion of older residents. If there is no subsidy, the insurance company will raise interest rates. The government responded to the court's ruling and found that there was a problem with the payment method.