Blueprint for ‘association’ health insurance unveiled

WASHINGTON — President Donald Trump and Labor Secretary Alex Acosta rolled out their final blueprint for “association health plans” on Tuesday, with Trump promising a small-business group that “you’re going to save massive amounts of money and have much better health care.”

Democrats decried it as “junk insurance,” and some patient groups warned it could undermine coverage for people in poor health. Republicans and some small-business groups said the administration is providing needed flexibility in the face of rising premiums.

Initial estimates by the nonpartisan Congressional Budget Office forecast modest changes, not a seismic shift.

The new plans created under the administration’s regulation incorporate the same protections for employees with pre-existing conditions that large-company plans now have, Acosta said.

The Labor Department said association plans could be offered to employers in a city, county, state or a metro area that includes several states. Plans within a particular industry — real estate, for example — can be marketed nationwide. Sole proprietors and their families could join an association plan.

Acosta cited CBO estimates that predict a modest impact: About 4 million people would be covered by the plans within five years, but only some 400,000 would have been uninsured otherwise. About 160 million people are covered by job-based insurance.