Trump’s health plans are cheaper but cover less

WASHINGTON — Consumers will have more options to buy cheaper, short-term health insurance under a new Trump administration rule, but there’s no guarantee the plans will cover pre-existing conditions or provide benefits like coverage of prescription drugs.

Administration officials said Wednesday the shortterm plans will last up to 12 months and can be renewed for up to 36 months. With premiums about one-third the cost of comprehensive coverage, the option is geared to people who want an individual health insurance policy but make too much money to qualify for subsidies under the Affordable Care Act.

“We see that it’s just unaffordable for so many people who are not getting subsidies and we’re trying to make additional options available,” said Health and Human Services Secretary Alex Azar. “These may be a good choice for individuals, but they may also not be the right choice for everybody.”

Buyers take note: Plans will carry a disclaimer that they don’t meet the ACA’s requirements and safeguards. And there’s no federal guarantee that short-term coverage can be renewed.

Democrats have branded Trump’s approach as “junk insurance,” and a major insurer group warned that consumers could be harmed. Other insurers were more neutral, and companies marketing the plans hailed the development.

Unable to repeal much of “Obamacare,” the Trump administration has tried to undercut how it’s supposed to work and to create options for people who don’t qualify for financial assistance with premiums.

The administration estimates that premiums for a short-term plan could be about one-third the cost of comprehensive coverage. A standard silver plan under the Obama law now averages $481 a month for a 40-year-old nonsmoker. A short-term plan might cost $160 a month or even less.

Short-term insurance has fewer benefits. A Kaiser Family Foundation survey of current plans found none that covered maternity, and many that did not cover prescription drugs or substance abuse treatment — required under the Obama law. They can include dollar limits on coverage.

Senate Democratic leader Chuck Schumer of New York said Democrats will “do everything in our power” to block the administration. It wasn’t clear how that might happen.