Four U.S. cities sue over Trump 'sabotage' of Obamacare

Four U.S. cities sue over Trump 'sabotage' of Obamacare

Four U.S. cities sue over Trump 'sabotage' of Obamacare

With the law still in place despite Trump's and congressional Republicans' hostility toward it, "we are looking to do everything we can to take incremental steps that will make insurance coverage more affordable", Jim Parker, director of the Department of Health and Human Services' Office of Health Reform, said in a briefing for reporters shortly before the rule became public. "This move is the lynchpin in Trump's plan to turn back the clock to the days when Americans with pre-existing conditions were left out in the cold and insurance companies could deny care at will or charge whatever they pleased". Major insurer United Healthcare is marketing short-term plans.

Short-term plans don't have to meet the Affordable Care Act's consumer protection and coverage requirements, so many will not cover services such as mental health care or prescription drugs.

The Trump administration's approach is expected to please brokers and the insurers that offer the coverage.

We are the wealthiest nation in the world and it's a disgrace that tax cuts to the wealthy supersede caring for the basic needs of its people. The IHC Group is an organization of insurance carriers headquartered in Stamford, Conn.

The new rules go into effect in 60 days, so expanded short-term policies could be available in October.

An Urban Institute study last winter estimated that 4.2 million people would enroll in the expanded version of short-term plans the administration had in mind. "We believe this could provide relief for well over 1 million people".

Up to now, short-term health insurance has been a niche product, covering people for several months or less than a year.

Short-term plans can also set annual and lifetime caps on benefits, and cover few prescription drugs.

"The broader availability and longer duration of slimmed-down policies that do not provide comprehensive coverage has the potential to harm consumers, both by making comprehensive coverage more expensive and by leaving some consumers unaware of the risks of these policies", said Senator Ron Wyden in a statement to Politico.

Short-term policies are available now, but consumers can only buy them for up to three months. The Obama administration limited the sale of short-term plans to 90-day periods as a stop-gap between more robust plans.

Senate Minority Leader Chuck Schumer of NY says Democrats will "do everything in our power" to stop the Trump administration's expansion of short-term health insurance plans.

Andy Slavitt, former acting administrator for the Centers for Medicare and Medicaid Services under former President Obama, said insurers have pulled out of the marketplace as a result of the Trump administration's refusal to guarantee monthly subsidy payments.

But that won't matter starting in January, when the penalty will disappear as a result of a tax overhaul that the Republican-led Congress adopted late previous year.

Short-term plans have also been a source of headaches for enrollees.

0% of the short-term insurance plans now on the market offer maternity care coverage.

Short-term plans have been around for decades, meant as a stopgap for job changers, students and others who found themselves without coverage.

The administration said the plans can last up to 12 months and will be allowed to be extended to a maximum of three years - reversing Obama-era rules that limited the coverage to no more than three months.

Supporters of the new rules say the short-term plans won't affect the ACA market as much as critics fear because the plans will mainly appeal to those consumers already sitting on the sidelines, or those who don't get a subsidy. The CMS projected that 600,000 people will buy the skinny coverage next year. The move allows small businesses and the self-employed to join together based on their industry or location and purchase health insurance through association health plans. The plans have limits on coverage.

The Trump administration took another whack at the Affordable Care Act on Wednesday.

Four cities on Thursday sued President TrumpDonald John TrumpPro-Trump pastor: Trump is "the most pro-black" president I've ever seen Trump renews calls for interview with Mueller: report CNN's Acosta: Hannity is "injecting poison into the nation's political bloodstream" MORE, arguing that he is violating his constitutional duty to enforce the law by "sabotaging" ObamaCare.

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