CNN featured a story about President Donald Trump and his administration expanding the employers’ current ability to offer cash to employees who wish to purchase healthcare somewhere else, even the Obamacare exchange.
President Trump seemed to be bent on dismantling Obamacare and this measure gives working Americans more cash from their employer to help cover the cost of health benefits.
The way it works now is that employers are often able to provide their employees with a tax-free fund to cover their health care costs, which can include deductibles and co-pays. The Trump administration wants to extend this, particularly for smaller businesses who found it difficult to meet expensive Obamacare requirements, as reported by CNN.
Prior to Obamacare, employers used Health Reimbursement Arrangements to reimburse workers for a wider array of expenses, including premiums. The Obama administration, however, barred the use of Health Reimbursement Arrangements to buy policies on the individual market.
The move is aimed at increasing health insurance coverage among those who work at smaller firms, many of which don’t provide benefits. It would also allow employers who do offer benefits to give each worker up to $1,800 a year in an Health Reimbursement Arrangement to pay for certain health care expenses or buy dental or vision coverage.
Trump’s administration would like to make it easier for Americans to buy an alternative to Obamacare, one of Barack Obama’s most criticized accomplishments.
Obamacare, for many, increased the costs and lowered the quality of care, particularly small business owners who struggled to cover healthcare for employees while still having enough income to keep business alive and profit.
CNN also reported that this announcement comes from an executive order that Trump issued last October. It’s designed to increase the choice and competition in the health insurance market, something that many people would enjoy being part of.
At one point the American health insurance system was similar to cell phone programs who continuously offer the same services and different incentives to join. For example, some health insurance providers would allow lower costs for Americans who were younger, more active, and in great overall health.
Once Obamacare was rolled out, many of the people who purchased their own plans were forced to go through the Obamacare portal and found out that the rates were much higher and the quality simply didn’t seem to be satisfactory.
In regards to Trump’s new plans, “the administration has already carried out the order’s other directives: expanding short-term policies, which last less than a year and aren’t required to adhere to all of Obamacare’s rules, and making it easier for small businesses to band together and offer coverage through association health plans, which also don’t have to offer coverage as comprehensive as the Affordable Care Act requires.”
If Trump can figure out a way that health insurance companies can profit while still providing affordable services to members, and cover members with preexisting conditions, then everyone will benefit.
When it came to the Affordable Care Act, there simply wasn’t anything affordable about it for many Americans.