The president of the United States, Donald Trump is trying to do it with the stroke of a pen what the Republicans in Congress could not do that is to bring about the end of the Obamacare. On Thursday, Trump was expected to sign an executive order which would direct an overhaul of the major federal regulations which in turn would be encouraging the rise of a raft of very cheap and loosely regulated health insurance plans that do not have to comply with certain Obamacare consumer protections & benefit rules. They would rather attract the healthier and the younger people leaving the sicker and the older ones in the markets of Obamacare having to face higher and higher costs.
It is still not very clear how far the administration will go or how quickly it would be able to implement the order of the president. But if this is successful, the new rules could upend the ways in which businesses and individuals buy coverage for their health. This is actually lowering the rate of premiums for the healthiest Americans at the expense of the key consumer protections which would be potentially tipping the markets of Obamacare into a panic situation. A senior fellow at the Kaiser Family Foundation who was previously working for former President Barack Obama's Health and Human Services Department, Karen Pollitz stated that this would result in killing the market within just a year. The main focus of the directive is associating the health plans which would be allowing small-business owners, trade groups and others to come together for the purchase of health insurance. These plans would be exempted from certain rules of Obamacare including the requirements of covering standard benefits like coverage of prescription drugs.
Now to make these changes within a short period of time, the administration is already working to reinterpret the Employee Retirement Income Security Act which is basically a huge federal law that governs a number of benefits in the workplace. This is as per the reports of the people who are quite familiar with the particular order. This is actually opening the door to more expansive changes which could affect Obamacare plans in a more direct manner. At the same time, the administration is also preparing to roll back the restrictions imposed during the rule of Obama on short-term health insurance plans which will allow insurers to sell stopgap policies once again that do not cover pre-existing conditions, mental health services and a number of other costly benefits. The coverage could extend for as long as a year which is up from a currently prevailing limit of just three months.