Trump issues rule weakening health care law
WASHINGTON — The Trump administration announced a sweeping new rule Tuesday that will make it easier for small businesses to band together and set up health insurance plans that skirt many requirements of the health care law, offering lower costs but also fewer benefits.
Labor Secretary Alexander Acosta said the new rule would give small businesses access to more affordable insurance options, like those available to large companies, starting as soon as Sept. 1. Millions of people could benefit from the new entities, known as association health plans, he said.
“As the cost of insurance for small businesses has been increasing,” Acosta said, “the percentage of small businesses offering health care coverage has been dropping substantially.” Today, “the Trump administration helps level the playing field between large companies and small businesses,” he said during a morning conference call.
The new entities would be exempt from many of the consumer protections mandated by the health care law. They may not have to provide certain “essential health benefits” like mental health care, emergency services, maternity and newborn care, and prescription drugs.
Labor Department officials said that association health plans would not be able to deny coverage or charge higher rates to individual employees with pre-existing medical conditions.
Still, consumer groups and many state officials have opposed the push for association health plans. They say the new plans will draw healthy people out of the Affordable Care Act marketplace, driving up costs for those who need comprehensive insurance.
Trump administration officials said premiums were already soaring because of flaws inherent in the health law, President Barack Obama’s signature domestic achievement.
The new final rule carries out an executive order signed by President Trump on Oct. 12.