Feb 20, 2018
A New Option For Those Trapped Between Paying the High-Cost of Obamacare or Dropping Coverage Altogether
Post by Freedom Partners
Arlington, VA – Today, the Trump administration proposed a new rule that would create a new choice for those trapped on Obamacare exchanges to purchase insurance plans that fit their needs at prices they can afford. The move reverses an Obama administration rule that restricted the time people could be enrolled in short-term plans to just three months, at which point they would be forced to purchase more expensive Obamacare plans or face a significant fine. Under the Trump administration proposal, people would have access to short-term health insurance plans for as long as 12 months.
Freedom Partners Executive Vice President Nathan Nascimento issued the following statement:
“Expanding the availability and duration of short-term health plans will give millions of people who feel trapped between paying skyrocketing costs under Obamacare or dropping coverage altogether a new option for affordable care. The availability of short-term plans also closes the door on the argument that new subsidies are needed to ‘stabilize the market.’ This expansion will allow people to buy plans that better meet their needs at more affordable prices through a variety of providers, and it’s that kind of competition we need in health insurance markets to drive costs down in the long-term.”
The individual mandate, which imposes a fine on individuals who do not purchase health insurance, will be eliminated in 2019 as part of the Tax Cuts and Jobs Act. The penalty, however, does remain in effect for 2018, which is $695 per adult or 2.5% of household income in excess of tax filing thresholds, whichever is higher. The availability of new, short-term health care options will be a welcome relief for those currently choosing to pay the penalty.