Short-term health plans cheaper but cover less


Even worse, not having it at all and forgoing preventive care as well as needed prescriptions and treatment? They include more than 210,000 in Oregon. And, unlike Obamacare policies, they don't have to cap consumers' cost-sharing burden at $7,350 for 2018. And because healthy people could be expected to gravitate toward these alternatives, or drop coverage altogether once the mandate's penalties end, ACA marketplaces would be saddled with a greater share of people with health conditions, driving up premiums for ACA health plans by almost one-fifth in 2019. CMS said the average short-term plan cost $124 a month in 2016 versus roughly $400 a month for an Obamacare plan. Also, insurers are not held to the ACA requirement that they spend at least 80 percent of premium revenue on plan members' medical care. However, since almost nine in ten ObamaCare enrollees are eligible for subsidies, according to the editorial, they will make the choice to remain with ObamaCare.

Four cities on Thursday sued President TrumpDonald John TrumpPro-Trump pastor: Trump is "the most pro-black" president I've ever seen Trump renews calls for interview with Mueller: report CNN's Acosta: Hannity is "injecting poison into the nation's political bloodstream" MORE, arguing that he is violating his constitutional duty to enforce the law by "sabotaging" ObamaCare. Three-quarters of respondents to a recent Kaiser Family Foundation poll said it is "very important" that Obamacare's rule prohibiting insurers from denying coverage due to a person's medical history remains law, while almost that many feel the same way about banning insurers from charging sick people higher rates.

A major insurer group quickly expressed disapproval.

The Trump administration is clearing the way for insurers to sell short-term health plans as a bargain alternative to pricey Obama-law policies for people struggling with high premiums. Plans will carry a disclaimer that they don't meet the Affordable Care Act's requirements and safeguards.

"If you start out healthy so that you get covered, but then later get a diagnosis, they can drop you at the end of the contract term", says Sabrina Corlette, a research professor at Georgetown University's Center on Health Insurance Reforms.

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"We make no representation that it's equivalent coverage", said Jim Parker, a senior adviser at HHS. "These policies will not necessarily cover the same benefits or extend coverage to the same degree".

According to estimates, the administration said short-term plan premiums could be about a third of the cost of comprehensive coverage - about $160 a month or even less.

These plans allow people to insure against the risk of catastrophic illnesses, the kinds that can bring financial ruin to a formerly healthy person, without all the bells and whistles-you won't have to insure for services you are unlikely to use.

The Trump administration estimates that 200,000 Obamacare enrollees will move to short-term plans next year.

"The people who benefit most from this plan are self-employed or small business owners in the individual market that were hit the hardest by the skyrocketing premiums under Obamacare", said Haislmaier. By 2021, enrollment in the individual market will decrease by 1.4 million. The Obama administration limited the sale of short-term plans to 90-day periods as a stop-gap between more robust plans.

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Just over 14 million people are enrolled in ACA plans this year. No one is above the rule of law, including the U.S. President.

That order also spurred the administration to issue a final rule last month aimed at making health insurance cheaper for some small employers.

Brokers will likely be pushing the plans, as they often pay higher commissions than do ACA plans.

However, these plans also don't have to adhere to all of Obamacare's rules, particularly the one requiring insurers to offer comprehensive coverage.

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