The Trump administration has taken steps to expand access to less regulated health insurance plans, including short-term, limited-duration insurance (STLDI) and association health plans (AHPs). These policies, according to a 2017 article from Reuters, were implemented after Congressional efforts to repeal the Affordable Care Act (ACA) failed, with the goal of providing more affordable alternatives to ACA-compliant plans. Proponents of these changes argue that they offer lower-cost options for consumers, particularly for those who are healthy or young.
The new rules on STLDIs allow these plans to last for up to 364 days, with the option for renewals for up to 36 months, a significant increase from the previous three-month limit under the Obama administration, according to The Heartland Institute’s Justin Haskins in a White House press release. These plans typically cost less than ACA plans but are not required to cover essential health benefits, such as maternity care, prescription drugs, or mental health treatment, and can deny coverage based on pre-existing conditions, as noted by the HSA Store.
Regarding AHPs, the administration issued a rule to make it easier for small businesses to join together across state lines to purchase health plans for their employees. While supporters, such as the National Restaurant Association CEO Dawn Sweeney, see this as a way to expand affordable, employer-sponsored insurance, critics warn of potential negative consequences. The Commonwealth Fund states that these plans could attract younger, healthier people, which could in turn lead to a sicker and more expensive pool of patients in the ACA marketplaces, driving up premiums for those who remain. Additionally, a federal court decision in March 2019 found that the Trump administration’s rules on association health plans violated federal tax law.
