(Newswire.net — February 25, 2018) — Corpus Christi group health insurance consumers will be offered short-term health care plans that extend for 12 months in new Trump administration ruling. The law would take effect in early 2019.
Under new rule proposed by the Trump administration, Corpus Christi health insurance providers will permitted to sell short-term health insurance for up to 12 months.
Officials believe these short-term plans would give more choices to health insurance consumers at a lower cost while simultaneously broadening coverage in rural areas that are not fully covered by the Affordable Care Act (ACA).
The issues that many health care experts find problematic, however, include short-term coverage plans that allow providers to ask consumers about numerous medical ailments including pre-existing medical problems. Consequently, one could be denied coverage because of this. ACA prohibits these rules.
Short-term plans will also be allowed to exclude maternity care benefits, preventive care, mental health services, or substance abuse treatment.
They also believe this new directive further strips away the comprehensive health reform enacted through the ACA commonly known as “ObamaCare”. As young, healthy people choose the short-term plans, the ACA plans will have greater high-risk pools which will increase premium costs.
Recipients of health insurance in Corpus Christi who opted for short-term coverage may see reduced access and increased out-of-pocket costs.
Health officials within the Trump administration dismiss these concerns and think “this is one step in the direction of providing Americans health insurance options that are more affordable and more suitable to individual and family circumstances,” said Health and Human Services Secretary Alex Azar. They estimate that between 100,000 and 200,000 individuals would opt to transition from federal exchange programs to short-term plans.
On January 4, 2018 the administration also issued the directive to allow “association health plans”. These plans would be available to small businesses through membership organizations. Beginning in 2019, the ACA penalty rule for those not carrying insurance coverage will be rescinded as well.
“I honestly think we’ll see more negative consequences than positive ones when these short-term plans are introduced. These plans are always stop-gap measures and often times, people can unexpectedly get sick and do not have the financial means to pay for the high costs of health care,” says Rick Thornton, a Corpus Christi health insurance agent.
Objective analysis estimates that even a nominal shift of approximately 200,000 people from ACA plans would also cost the government nearly $168 million (from $96 million) in increased ACA costs.
The federal government has initiated the comment period from the public and healthcare professionals which lasts 60 days.
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