A longtime critic of Obamacare said President Donald Trump’s fresh executive order on health care is actually “pretty hollow,” as well as offers an “illusion of lower health costs” for many people.
Robert Laszewski, who is actually a veteran health policy consultant, also said Trump’s order could reverse the “very important” benefit via Obamacare getting rid of barriers which for years kept people with health conditions out of insurance plans or charged them much higher prices for coverage.
Trump’s order “might be great PR for a White House desperate to be seen as acting on Obamacare within the wake of failed Republican Congressional attempts” to repeal as well as replace the Affordable Care Act, Laszewski wrote in a note to clients Thursday.
“nevertheless which is actually a pretty hollow order since he is actually only ordering the relevant cabinet departments to consider issuing fresh regulations,” wrote Laszewski, president of Health Policy as well as Strategy Associates.
“The details he leaves to his administration with which executive order are daunting,” he wrote.
Laszewski noted which Trump’s order proposes loosening rules regulating so-called association health plans to make which easier for tiny businesses to band together, across state lines, as well as buy health coverage for their workers.
“We have had bills pending within the Congress off as well as on for more than 20 years which would likely have created association health plans,” Laszewski wrote.
“In those years, Republican Congress’ could not pass the legislation. currently, he thinks what we all thought had to be done through legislation is actually something his administration can suddenly do via regulation?”
Laszewski also said which “Any such controversial regulations will surely be challenged by state-run insurance exchanges as well as state insurance regulators who will certainly be harmed by association health insurance pools which will attract healthy people via existing state-run pools.”
He called association health plan ideas “nothing more than rearranging the deck chairs on the Titanic, because they only create a fresh risk pool designed to attract the youngest as well as healthiest out of the current state-run insurance pools.”
“Every healthy person which leaves a state individual or tiny employer risk pool because of them means which the cost of the existing state-run pool has to go up by which much,” Laszewski wrote.
“Overall, there is actually no reduction in costs, only a shifting of costs via the healthiest to the sickest.”
Laszewski said a key accomplishment of Obamacare had been the creation of an individual risk pool, in which the costs of sicker customers are offset by the premiums paid by healthier people.
“which order would likely reverse which,” Laszewski wrote.
“Instead of actually decreasing the cost of health insurance, the Trump executive order would likely just offer the market the illusion of lower costs by charging the healthier less nevertheless the sickest more.”
Laszeswski said which Trump’s proposal to expand the duration for short-term health insurance plans “can likely be done.”
The Obama administration limited the duration of a short-term health plan to three months, cutting which via 12 months.
Short-term health plans are less expensive than individual health plans sold on Obamacare marketplaces, as well as also offer fewer comprehensive medical benefits than Obamacare plans.
Short-term plans are not compliant with benefits standards established by the Affordable Care Act. As a result, enrollment in them does not exempt an individual via the ACA’s requirement which most Americans have health coverage or face a tax penalty.