The Trump administration has been determined to make improvements to the American health care system. And they are beginning to make progress on that front.
Their stated goal has been to repeal and replace the Affordable Care Act (or ACA). The ACA – or ‘Obamacare’ – had its positives but it also had its flaws.
Millions of people lost their employment-based insurance, with many companies opting to pay a tax penalty rather than offer coverage under the ACA. Millions more lost their private health insurance because their existing policies did not cover the “10 essential health benefits” required under the ACA, which includes care for maternity and mental health. It also raised the short-term health care costs, essentially pricing out some people from availing of health insurance.
Now, Trump’s team hasn’t been able to repeal this like they had planned, but they are taking the steps to address some of the deficiencies.
The government has expanded the availability of short-term, limited duration insurance (or STLDI). These are shorter-term policies that come cheaper than the average ACA coverage.
There are some key differences. They do not have the same coverage requirements, like mental health care, and are exempt from covering people with pre-existing conditions. These new plans do not provide equivalent coverage – nor does it purport to be.
But the other side of that is affordability. These short-term policies can cost as little as a third of the average unsubsidized policy under the ACA. James Parker, a senior adviser at the department of Health and Human Services, told reporters in August that the policies could cost as little as $124 while a policy that meets the ACA coverage requirements cost an average of $393.
These new plans are accessible for those who have been left in the dark by the ACA, those who were uninsured because they could not afford ObamaCare. It’s also an option for those who receive too much, those who don’t actually need every one of the “essential benefits” the ACA required. The STLDI gives them a cheaper alternative that can save them money.
The previous administration also offered short-term plans, but those were limited to just three months with no option for renewal. In Trump’s plan, these can last for a year and may even be renewed up to three years.
The STLDI may not be a one-size, fit-all solution for everyone, but it does address a very real need in the health care system today, and a step towards lasting health care reforms.
SOURCES:
“Under New Rules, Cheaper ‘Short-Term’ Health Care Plans Now Last Up To 3 Years.” NPR, 1 August 2018, Web. https://www.npr.org/sections/health-shots/2018/08/01/634539877/under-new-rules-cheaper-short-term-health-care-plans-now-last-up-to-three-years
“Americans are ‘winning’ on health care as Trump administration chips away at ObamaCare.” Fox News, 6 August 2018, Web.
“10 Obamacare Pros and Cons.” The Balance, 2 August 2018, Web.
https://www.thebalance.com/obamacare-pros-and-cons-3306059
“Trump administration clears way for cheap short-term health plans to compete with Obamacare.” CNBC, 1 August 2018, Web.
https://www.cnbc.com/2018/08/01/trump-clears-way-for-health-plans-to-compete-with-obamacare.html