Executive order mandating
These short-term policies typically have higher out-of-pocket costs and cover fewer services than traditional insurance.They were designed for people who, for example, expect to be out of work and therefore without insurance for a limited period of time.
Association health plans were treated as small businesses and were therefore required to cover all of the law’s mandated benefits.
Essential health benefits, mandating that insurers cover everything from hospital care to prescription drugs to maternity care, are central to the ACA’s insurance protections: They prevent plans from crafting their coverage to attract mostly young and healthy customers at the expense of older and sicker people, which had been one of the primary problems with the association health plan model before the law.
That kind of coverage is totally free from the health care law’s insurance regulations: the mandate to cover essential health benefits, the prohibition on charging sick people more than healthy people or denying people coverage based on their medical history, and so on.
Short-term insurance had previously been allowed to last as long as 364 days.
The result was often health insurance that skirted state rules and was a better deal for businesses with young and healthy employees, who are likely to prefer skimpier health plans.
The former insurance regulator described the situation prior to the ACA to Kliff as being “a race to the bottom, with some associations offering lower-cost plans that covered virtually nothing.” Obamacare changed these rules.“We’ll be back to where we were before the Affordable Care Act.” The draft order did not specify whether individuals would also be allowed to buy into these associations health plans, as some Republicans like Paul want.But, according to the source, the regulations resulting from the order could potentially be written to allow self-employed people to buy into the now-deregulated association market, which would be an even bigger blow to Obamacare.The White House declined to comment when Vox inquired about the pending order.A senior administration official detailed the outline of the executive order to the Wall Street Journal on Saturday evening, which aligns with the description provided to Vox.On Tuesday morning, Trump promised that his forthcoming actions would provide “great Health Care to many people.” But experts have warned they could significantly destabilize the Obamacare markets.