NEW YORK- Wednesday, June 20, 2018- on Tuesday ‘The Trump administration’ submitted a finalized rule that would enable millions of Americans to buy skimpy health insurance plans that do not comply with key Obamacare coverage requirements, marking its latest effort to chip away at the healthcare law.
The rule which was being hosted by the U.S. Department of Labor on Tuesday, allowed small businesses, similar to large employers, also who are self-employed to tie up together and also purchase lower-cost health insurance policies.
Health providers, insurers, and medical groups have warned that the plans could drive up premiums and make insurance unaffordable for some people by siphoning off healthy consumers who want cheaper coverage, leaving behind a sicker patient pool with higher medical costs in Obamacare plans. But these insurance plans would not be subject to requirements under the Affordable Care Act (ACA), commonly called Obamacare, which included mandatory coverage for a set of 10 essential health benefits, such as maternity and newborn care, prescription drug costs and mental health treatment. They are expected to be far less expensive than Obamacare plans.
House Minority Leader Nancy Pelosi said in a statement, “The Republicans agenda is to inflict higher costs on sick Americans just to hand tax breaks to big corporations and billionaires,”
Trump last year also ended billions of dollars of insurance subsidies under the law. Both were aimed at keeping ACA insurance plans more affordable for millions of Americans. Republicans repealed that the ACA’s so-called individual mandate, the requirement that most Americans purchase health insurance or else pay a fine, in an overhaul of the U.S. tax code last year.
Republicans have also praised the new rule, as after being available cheaper health insurance options to those who cannot afford Obamacare plans or who do not want them would be highly beneficial for them.