Donald Trump will sign an executive order that will allow individuals in the US to pool together and buy insurance even outside their own state. He made this announcement in a Tweet on Tuesday morning. Proponents of the move are arguing that the time is opportune for the President to use his executive powers as the Congress has been taking too long for getting affordable healthcare to Americans.
President Trump has long bemoaned the high cost associated with buying health insurance, and a move to allow people to buy insurance outside of their state can help bringing costs down. However, insurance experts are of the opinion that there are a number of factors that influence the premiums, and opening the competition may not be the best way forward to bring down costs.
Although there is still ambiguity over what a new plan will be on paper, officials said that there is an increasing likelihood that the executive order will be signed within a week.
The plan will charge lower premiums as it would not offer the same level of coverage that is necessary under the Affordable Care Act. However, this will also cause the insurance providers to have a run-in with state regulators. Opponents are of the move are of the opinion that such a move would take people out of the insurance market, as many would like to have full coverage for their health.
What’s an Association Health Plan?
Association health plans have been used by individuals or small business owners to get the same kind of lucrative premiums as large employers get for their own businesses. These plans have helped individuals together to band together and procure health insurance in a manner that large corporations have been able to get. However, these association health plans have also come under scrutiny as they have been able to circumvent some key regulations.
Conservatives have for long clamoured for having laxer regulations as it helps in bringing the prices down, and in turn, makes the coverage affordable to Americans. Conservatives have been staunch critics of the Affordable Care Act as they believe that that the act was a key reason for spiking up premium rates.
The reason why insurance coverage plans are so contentious is because lowering premium rates can mean that many Americans have a type of insurance that doesn’t cover them for all the disorders. As health insurance depends upon pooling risk, it will interesting to see if Trump – first and foremost – signs the executive order, and the repercussions it will have on the entire industry.