President Donald Trump took healthcare into his own hands Thursday singing an executive order on healthcare after Republicans in Congress failed to put a single bill on his desk that would fix or replace Obamacare.
The order focuses on association health plans which will give more leeway to small businesses who wish to band together to buy health insurance. Under Trump’s direction, the Department of Labor will allow small employers to buy insurance as a single group if they are in the same state, in the same “line of business” or are in the same trade association officials told reporters Wednesday evening.
Democrats are more concerned about a change to short-term health insurance contained within the order. Trump will lift Obamacare limitations on the “temporary” plans to allow them to last as long as 12 months and be renewable – essentially functioning as standard insurance. Healthy people are likely to ditch expensive exchange plans for the more affordable offerings leaving only sicker consumers in Obamacare plans which will force premiums higher. The short-term plans are cheaper because they are not required to have the expensive “essential benefits” that many consumers don’t want or need.
Trump’s plan will also allow for the use of health reimbursement accounts to pay for their premiums from tax-free income giving individuals the same tax advantages as employer-provided health insurance.
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