More Health Insurance Options, More People Covered

KEY TAKEAWAYS

• A new study by the left-leaning Urban Institute found 4.3 million Americans will choose short-term health plans next year, of whom 1.7 million were previously uninsured.
• Short-term health plans are free from Obamacare’s most burdensome regulations, allowing plans to be sold for up to 80 percent less.
• Americans who get no subsidies in the Obamacare exchanges struggled to afford coverage before Republicans moved to offer more affordable options.

The deregulation of short-term, limited-duration plans will result in 1.7 million more Americans having health care coverage in 2019, according to a new study by the left-leaning Urban Institute. Short-term plans can provide an affordable alternative to millions of Americans who do not get subsidies to help purchase their insurance and who have borne the full weight of rising premiums each year.

More People with Insurance

more Coverage options

Obamacare forced Americans into expensive, one-size-fits-all coverage. In 2017, as a result, enrollment in the individual market declined by 1.8 million people, with many Americans deciding the coverage was too expensive for them. This is the opposite of what Obamacare supporters promised when the Affordable Care Act was passed.

Republicans have responded with affordable alternatives, using current authorities to undo needless Obamacare regulations. In July, the Department of Health and Human Services eliminated the Obama administration’s restrictions on short-term, limited-duration insurance plans. These plans will be available for up to one year at a time and consumers can extend coverage for up to three years. Under Obama administration rules, short-term plans could only last up to 90 days.

The plans will give Americans coverage that is suitable to their health care needs at a price that is 50 to 80 percent less than an Obamacare plan. This is because short-term plans are not required to comply with most Obamacare regulations.

The new Urban Institute analysis shows that states will have fewer uninsured people as they begin buying the short-term coverage, with 4.3 million Americans estimated to enroll. It also notes that the Trump administration rule allows these plans “to compete against ACA-compliant plans.” These findings are further evidence of Republicans delivering what they promised: more competition and affordable alternatives for Americans.

More People Will Get Coverage (in Thousands)

X – States that prohibit short-term plans