“[T]he Trump administration is doing everything it can to help young people and working families gain affordable coverage.”
Trump’s new short-term health insurance rule is a major victory for young people and working families
By Justin Haskins
August 8, 2018
Last Wednesday, Health and Human Services Secretary Alex Azar announced a finalized rule granting consumers greater access to affordable health insurance policies. Under the new rule, people will be allowed to purchase short-term, limited-duration health insurance plans for periods as long as 12 months.
Fueled by massive regulatory burdens and limited market competition, the cost of purchasing and using an Obamacare health insurance plan has skyrocketed in recent years. According to an analysis by Health Pocket, the average monthly premium for a 30-year-old purchasing a mid-level Silver Plan in 2018 is $477, up 31 percent from just one year prior.
The average family enrolled in a Silver Plan will pay a maximum of $13,725 for out-of-pocket expenses, with Silver Plan deductibles increasing by 13 percent in just the past year alone.
Working families can’t afford to pay more than $13,000 to cover out-of-pocket expenses. In fact, health insurance this expensive is virtually useless.
The high costs associated with an Obamacare plan are a big reason why the Centers for Medicare and Medicaid Services predicts about 600,000 Americans will sign up for a new short-term health insurance plan next year. By 2022, CMS expects 1.6 million to be enrolled in a short-term plan.
According to the Department of Health and Human Services, the average premium of a short-term plan in the fourth quarter of 2016 was only $124. Even if this price were to increase because of the rule change allowing plans to be for 12-month terms, it will still be much less money than the cost of an Obamacare plan, making it a better option for millions of consumers, especially younger Americans.
The healthcare system is failing, and has been for decades. Despite the promises made by former President Barack Obama and the congressional Democrats who passed Obamacare into law, the legislation has only made things worse. Congress needs to pass a bill to repeal and replace Obamacare. But since that has yet to occur, the Trump administration is doing everything it can to help young people and working families gain affordable coverage.