CEO DATELINE - Trump may expand association health plans
CEO DATELINE - Trump may expand association health plans
- September 29, 2017 |
- Walt Williams
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President Donald Trump said Wednesday he is likely to sign an executive order that would allow the purchase of health insurance policies across state lines—a regulatory change that could expand the ability of businesses to access insurance through association health plans.
The idea of allowing employers to band together through trade or professional organizations to purchase employee health coverage across state lines has long been popular among some conservative lawmakers and trade groups, but it has never gained much traction in Congress. The most recent attempt was in March when the U.S. House of Representatives passed a bill allowing small businesses to use association health plans to purchase out-of-state plans. The legislation failed to gain traction in the Senate.
Now that the GOP's most recent effort to repeal and replace the Affordable Care Act has failed, Trump is suggesting he will sign an executive order to help lower insurance costs, although he didn't spell out specifics.
"I am considering an executive order on associations and that will take care of a tremendous number of people when it comes to health care," Trump told journalists, as reported by Business Insider. "And I'll probably be signing a very major executive order where people can go out, cross state lines, do lots of things, and buy their own health care. And that will be probably signed next week, it's being finished now." http://read.bi/2k81QSZ
Business groups such as the National Retail Federation and National Federation of Independent Business have long lobbied for expanding association health plans, but the idea has many detractors.
Both America's Health Insurance Plans—which represents insurers—and the National Association of State Insurance Commissioners say allowing the purchase of plans across state lines would undermine state consumer protections. Critics also say the policy could lead to higher premiums for higher-risk populations. http://bit.ly/2yw4O5X
Trump did not indicate when he would sign the order.
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