Health Insurance Through Health Associations

Posted on Posted in Health Insurance

Health care and health insurance have always been in the headlines whichever administration it be. In a bid to make health care more affordable an executive order has been signed this month. This follows the multitude of reforms and revisions intended towards Obamacare and make it more inclusive and affordable.

The executive order has a few directives, all aimed at making Obamacare reach more number of people. The most important points of the order are as follows-

    • People should be able to buy health insurance through health associations as groups. The existing health insurance associations allow only small business employees with a common interest to buy through them. The proposed change will expand these associations to include more businesses and not be limited to a particular state.
    • Small business owners can form associations to buy health plans for employees at group rates
    • Short-term health plans should be valid for maximum of one year not three months
    • Health reimbursement policies to be expanded

Removing the complicated HRA requirements and making the eligibility simpler would enable more people to come under it and be able to better manage their healthcare costs

With these proposed changes President Trump wants to combat the rising premiums of Obamacare health plans and make it easier for lower income people to buy health insurance coverage. The executive order will come into effect only after deliberation and approval by different departments and agencies concerned.

Skeptics and people with opposing opinions have not welcomed the executive order citing several negative aspects. By removing some of the restrictions on the health plans of Obamacare, the order will make available plans which do not need to have the minimum essential benefits. So, there will be less protection for the customers. People will end up buying the least amount of insurance thereby making themselves vulnerable. By offering less benefits the plans will show a decrease in premiums but it will not serve the actual purpose of getting a strong healthcare insurance policy.

Any change in the health insurance laws will most likely make the market unstable and make the insurance companies jittery.

Many see this order as an attempt by President Trump to compensate for the failure to do away with the Affordable Care Act. There is an apprehension that more of such orders on health insurance may follow until the bigger job of repealing Obamacare is achieved.