
© Getty Images/PoolPresident Donald Trump
Trump's order reveals how Obamacare functions as a trap for policymakers.There is something clever, almost cunning, about Obamacare's policy scheme: It requires unequivocal political support from an administration in order to avoid accusations that the law is being undermined. It is a kind of joint political-policy trap, in which the only solution to the law's failings is to bail it out.
This is evident in the reaction to the
executive order on health care President Trump signed today. Trump's
order is light on specifics, but it is intended to facilitate the expansion of association health plans, which would let trade groups and small businesses band together to purchase health insurance like large employers. These plans would be exempt from some of Obamacare's rules.
This idea has been floating around Congress
for decades. The House
passed legislation aimed at expanding association health plans in March of this year, though it was never taken up in the Senate. Over the last several years, it has been
championed by
Sen. Rand Paul (R-Ky.), who spent months working with Trump on the plan. In addition, the order eases restrictions on short-term health plans, which are exempt from many of Obamacare's mandates.
Comment: TownHall on Paul Rand's comments:
According to Paul, the executive order will create "Health Associations," which would allow people to create groups similar to large corporations in order to get lower premiums on their plans. Paul said that these Association Health Plans will "be among the biggest-free market reforms" of the healthcare industry in decades, and is a better alternative than repealing the bill outright. Paul called Trump "bold" in making these changes, and said that he worked with Trump for a long time to create this executive order.
From
Breitbart:
"How will it work? Well, nationwide associations like the National Restaurant Association will be allowed to form groups across state lines and, with the leverage of size, demand Big Insurance bring down their outrageous premiums.
Many of the 28 million people left behind by Obamacare who still don't have insurance work low-wage jobs in our fast food restaurants. The President's decision today will allow workers from two million restaurants to come together to form a buying group and through sheer size get cheaper and better insurance.
Millions of people will be eligible for the same group insurance that big corporations offer. In fact, Health Associations may grow to be larger than the largest of our corporations. Currently, about half of private insurance is cross-state, self-insured ERISA plans, and most employees love them. The President's action today will allow the millions of people in the individual market an escape route to group insurance.
Association Health Plans will be among the biggest free-market reforms of health care in a generation, and it will do more to counter the impact of Obamacare than most of the repeal bills did, because it will actually go after regulations that the legislation didn't touch due to Senate rules.
Existing law allows the President to legalize these new groups and plans. Where previous administrations have been weak, President Trump is bold to allow this reform."
Additionally, Paul explains that these new "Health Associations" are cross-state entities that are exempt from some of the costly state and federal regulations other plans face.
Pre-existing conditions are not a disqualifier from the plan, either. Paul supports this plan as it is not a mandate, subsidy, or tax, but rather is a removal of regulations and other barriers.
Comment: Trump executive order eases restrictions on buying insurance outside of Obamacare