Trump offers dose of sanity
President Trump wants to offer Americans who can’t afford the Affordable Care Act’s health care premiums a cheaper alternative, but detractors say it’s just a ploy to further weaken Obamacare, the former president’s signature policy achievement.
Is anyone surprised that a basic pocketbook issue must be viewed through a blue-state, redstate lens?
The administration has now allowed insurers to sell shortterm health plans, so that individuals struggling to pay for the more expensive Obama-mandated policies have another option besides dropping insurance altogether. The administration estimates that these plans’ premiums could be about one-third the cost of comprehensive coverage. That could mean a savings of more than $300 a month over a standard Obamacare plan. Obviously, less coverage comes with these lower-priced health plans. These policies offer limited benefits and may not honor existing medical conditions.
It’s plain these policies aren’t for everyone, and they don’t claim to be. But they do fill a niche market for people who are generally in good health, have a moderate income and who need short-term health insurance. It also makes sense for people needing temporary coverage due to changing situations, like a new job; retiring before Medicare eligibility; or no longer qualifying for coverage under their parents’ plan. Administration officials have indicated these plans can range up to 12 months and be possibly renewed for up to 36 months, though there’s no federal guarantee that will occur.
While critics will try to paint this initiative as just another Trump maneuver to undercut Obamacare, it’s clearly designed for people who don’t qualify for Affordable Care Act subsidies based on their income. That segment of previously uninsured Americans, as well as younger, healthier individuals, clearly are the main beneficiaries of the Trump tax measure that did away with the monetary penalty for not carrying insurance. That segment of the population might now choose short-term coverage, which at least provides a basic safety net in case of ill health or injury.
Of course, Democrats, fearing the erosion of the assumptions that made Obamacare viable, seem to care more about the flawed legacy of that policy than the welfare of many middle-class Americans caught in a health insurance squeeze. They’re afraid what they consider “junk insurance” will draw healthy people away from Obamacare’s healthinsurance exchange markets. They’re the ones who keep Obamacare afloat by subsidizing the cost of insuring the older, sicker pool of policyholders. Without that base of claim-free premium payers, the Affordable Care Act becomes financially unsustainable. According to The Associated Press, insurers already are developing the “next generation” of short-term plans that will be more responsive to consumer needs, with pros and cons clearly spelled out. The administration says it expects about 1.6 million people to pick a short-term option when the plans are fully phased in.
With these short-term individual plans, and “association health plans” for small businesses that can be offered across state lines, the Trump administration is attempting to reintroduce competition into the health care industry, which can only benefit the American health care consumer.
On a related note, the Centers for Medicare & Medicaid Services announced Tuesday that, for the second year in a row, the average basic premium for a Medicare Part D prescription drug plan in 2019 is projected to decline. Basic Part D premiums are expected to fall from $33.59 this year to $32.50 next year.
“President Trump and Secretary Alex Azar have made clear that prescription drug costs must come down. The actions that HHS and CMS are taking to increase competition in order to drive down costs for patients are working,” said CMS Administrator Seema Verma. “CMS will continue to strengthen the Part D program and bolster plans’ negotiating power so they can get the best deal for seniors from prescription drug manufacturers.”
While Congress hems and haws over the politics of Obamacare’s future, the Trump administration is actually effecting positive change by using the policy tools it has available and relying on a strong sense of purpose.