Trump plan: Less health insurance for lower premiums
WASHINGTON — The Trump administration Tuesday spelled out a plan to lower the cost of health insurance: give consumers the option of buying less coverage in exchange for reduced premiums.
The proposed regulations would expand an alternative to the comprehensive medical plans required under former President Barack Obama’s health law. Individuals could buy so-called “short-term” policies for up to 12 months. But the coverage would omit key consumer protections and offer fewer benefits, making it unattractive for older people or those with health problems.
The plans would come with a disclaimer that they don’t meet the Affordable Care Act’s safeguards, such as guaranteed coverage, ten broad classes of benefits, and limits on how much older adults have to pay. Insurers could also charge more if a consumer’s medical history discloses health problems.
Nonetheless, administration officials said they believe the short-term option will be welcomed by people who need an individual health insurance policy but don’t qualify for the ACA’s income-based subsidies.