Four U.S. cities sue over Trump ‘sabotage’ of Obamacare

Four U.S. cities sue over Trump ‘sabotage’ of Obamacare

Four U.S. cities sue over Trump ‘sabotage’ of Obamacare

A major insurer group is warning that the Trump administration's short-term health insurance plans could be harmful for consumers.

"Our main concern is that OR consumers understand that these policies are not ACA compliant, and may not offer the same protections and health benefits as an ACA plan, such as emergency services, prescription drug coverage and maternity care", said Brad Hilliard, spokesman for Oregon's Department of Consumer and Business Services.

"We make no representation that it's equivalent coverage", Parker said. These rule changes represent his attempts to "reinvent and transform the system we have (with) the tools we have at our disposal" in a way that gives "as many options to individuals as possible".

The administration estimates that premiums for a short-term plan could be about one-third the cost of comprehensive coverage.

Smedsrud said most plans restrict coverage for those who have sought treatment for a pre-existing condition over the past five years.

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But many people complained that the policies were too expensive.

The administration expects about 600,000 people to enroll in a short-term plan in 2019, with as many as 200,000 dropping out of ObamaCare to take advantage of the cheaper coverage.

The cities also cited a recent rule adopted by the U.S. Centers for Medicare & Medicaid Services in April that the lawsuit said would increase the cost of health coverage and impose new barriers to enrollment. This could have the effect of driving premiums slightly higher on the ACA exchanges, because healthier people will leave the market, according to the CBO. Patty Murray, D-Wash., called the administration's anticipated action "a new sabotage step that will do even more to let insurance companies offer junk plans".

"We continue to see a crisis of affordability in the individual insurance market, especially for those who don't qualify for large subsidies", CMS Administrator Seema Verma said in a statement.

"This will at least provide a little bit of relief for people who are otherwise essentially forgotten by the Affordable Care Act", Antos says. 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.

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The complaint from the cities of Columbus, Baltimore, Cincinnati, Chicago, and Charlottesville charges President Trump with the "premeditated destruction" of parts of the ACA. That's because more than 85 percent of the people who get insurance through the exchanges qualify for subsidies that keep their premiums affordable and stable.

Some in the industry say they're developing "next generation" short-term plans that will be more responsive to consumer needs, with pros and cons clearly spelled out.

"For many who've got pre-existing conditions or who have other health worries, the Obamacare plans might be right for them", Health and Human Services Secretary Alex Azar told "Fox & Friends" on Wednesday. Because it is law, the President of the United States, being that he is expected to "take care that the laws be faithfully executed", must not take actions which circumvent, curtail or break this law. "The proposed rule fails to adequately protect our community".

The other ways they keep their premiums down is by offering bare-bones coverage in the first place. "This will make a low-priced option like short-term insurance even more attractive, particularly if insurers further adapt their benefits and conditions of coverage to better align with the needs of the unsubsidized population".

"It's very much buyer beware".

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The policies will be available for 12 months at a time, up from a current limit of three, and customers will be able to renew them for additional years.

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