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President Trump Issues Executive Order to Allow for Association Health Care Plans

President Trump Issues Executive Order to Allow for Association Health Care Plans

October 13, 2017 Government Relations News

On Thursday, October 12, President Trump issued an executive order that would allow trade associations and other groups to offer their own health plans, the largest move that the Trump administration has made towards undoing and weakening parts of the Affordable Care Act (ACA). Once enacted, these trade association health plans would allow groups to offer cheaper insurance options while also possibly destabilizing the markets created by the ACA.

Trade associations would be exempt from some strict regulations created by the ACA like selling insurance across state lines and may also be able to offer plans with fewer benefits. These plans would attract healthier customers while leaving only sicker patients who require more health insurance to remain on the ACA exchanges. This could potentially cause rates in the exchanges to increase significantly.

President Trump will also direct federal agencies to implement rules that would lift Obama-era limits on short-term insurance plans that are sold outside of the ACA exchanges while also looking to expand a program that would allow employers to set aside pre-tax dollars to help pay insurance premiums for their employees.

Click here to read the full text of the executive order.

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