Donald Trump's administration is presently opening up a new way for people of the United States to purchase health care insurance which does not comply with the regulations of the Affordable Care Act. This is actually the latest step that has been taken by the administrative efforts of the current US president against the healthcare law. The department of Health and Human Services of the United States has put forward some new rules and regulations which would allow Americans to purchase short term insurance plans up to a period of 364 days. The coverage of this insurance plan is allowed to ignore a number of core provisions of the health care law. Firstly, the plans can deny insurance to people for their medical history. Secondly, the plans can charge increased premiums for pre-existing conditions of the buyers. Thirdly, the plans can simply ignore the benefits packages which will be appealing to people who are young and healthy.
The administration of Donald Trump is bringing forth a number of loopholes by widening the definition of short-term insurance. This should entice more people buy insurance outside the marketplace for health care. According to the administration this would actually be fulfilling a campaign promise that had previously been made to the people to repeal Obamacare.
Alex Azar who is the secretary of HHS mentioned to reporters on Tuesday that it is actually one step in providing the people of America a type of health insurance which is not only affordable but also more suited to each of individual and their family circumstances. On the other hand, experts are of the viewpoint that these changes would result in damaging the market for customers who are left behind. The main reason is the fact that people who are healthier and younger are very likely to leave the markets and simply go for short term insurance plans leaving behind the individuals who are sick and old where ACA markets have higher chance of facing increased premiums. Moreover, some of the insurers might even decide to leave the laws of the marketplace completely if customers become unhealthy and thereby to expensive as well.