The struggle to pay for health insurance is real, but Matt Baker, former legislator turned Region 3 director for the U.S. Department of Health and Human Services said relief is on the way.
“Americans who buy their own insurance, rather than receiving it from an employer, have seen premium increases double since Obamacare’s implementation,” Baker said. “Pennsylvania communities, especially, have felt the impact and have been calling on improvements ever since.”
Baker said the Trump Administration has finalized new regulations for an insurance plan that will help 28 million uninsured men and women who remain under Obamacare.
“Throughout many states, these plans, which are dubbed “short-term, limited-duration” insurance plans, have offered Americans up to 12 months of insurance for decades, where the Obama Administration limited the plans, nationally, to three months, eliminating this option for many people,” stated a press release from Baker. “However, the Trump Administration’s new insurance plans, subject to state regulation, many now last up to 12 months, once again, with a renewal option for up to 36 months in total.”
These plans are a welcome relief, Baker said.
“In Pennsylvania, for instance, premiums rose 120 percent from the implementation of Obamacare’s major regulations through the end of President Obama’s term in office,” he said.
Critics have blasted the short-term policies, saying they allow insurers to deny coverage for things like prenatal care, mental health and pre-existing conditions, and will raise the premiums for everyone else.
When asked how he’d respond to critics, Baker replied, “Full consumer disclosure must and will be made about these more affordable health plans renewable up to three years. Right now about 28 million people in America have no insurance and these health plans give them a much more affordable option and choice to decide for themselves if it is right for them.”
Baker’s press release answered some questions about the short-term plans.
The first question was what do these plans cost. “While state regulations can affect prices, short-term, limited-duration plans are expected to be 50 to 80 percent cheaper on average nationally than Obamacare plans,” Baker’s release stated.
“Experts estimate that as many as two million or more Americans will enroll in one of these plans.”
The plans vary by insurer, Baker said, and coverage, copays and deductibles will vary and depend on state regulation.
“The Trump administration has instituted robust requirements for informing consumers about the limits of this option,” Baker said. “Insurers offering short-term, limited-duration policies will be required to prominently display in the contract and in application materials that the policy is not required to comply with federal requirements for health insurance, including the rules created by Obamacare.”
These plans aren’t for everyone, he acknowledged.
“Short-term, limited-duration insurance makes sense for Americans who don’t have or cannot afford other sources of coverage,” he said via press release.
Who should apply would be Americans who don’t have access to health insurance coverage through their employer, perhaps because they work multiple part-time jobs; are independent contractors or self-employed in today’s “gig economy,” and can’t afford Obamacare plans; or are between jobs or other sources of coverage, like young people who have graduated from college but aren’t yet employed
“The federal government has said that consumers can be allowed to purchase plans with guaranteed renewability of up to 36 months,” Baker said. “Based on this flexibility, consumers may be able to lock in their premiums at a certain level and keep their coverage for up to three years, protecting them from rate increases during this time in the event that they get sick. The availability of these options will depend on insurers’ decisions and state regulation.”
While the plans don’t satisfy the individual mandate for health insurance, Baker said President Donald Trump has removed the penalty associated with the individual mandate.
“Eliminating the individual mandate penalty and expanding access to these short-term, affordable plans are just part of the Trump Administration’s efforts to ensure that as many Americans as possible have access to affordable health insurance,” Baker said.
“We have also expanded access to association health plans, which allow small businesses and self-employed Americans to band together to buy insurance, and continue to work with states to open up more affordable options and bring down premiums.”
He continued, “The Trump administration is working hard to ensure that healthcare is affordable and accessible for all Americans.”
