Trump just made Health Insurance cheaper.
The Trump Whitehouse reduced regulation on less expensive, limited health insurance policies. His goal is to make Health Insurance cheaper. Trump’s focus is Short Term Medical plans, which are less expensive and provide less coverage. On the other hand, ACA (or Obamacare) plans are luxury plans. ACA plans must cover EVERYTHING. As a result preventive care is covered. Pregnancy is covered, even for men. As a result, covering everything costs a fortune.
How do you make a luxury product affordable? Spread the cost out over more payers! In order to lower cost, the federal government pays part of the premium. To clarify, government payments decrease as family income increases. As a result a family must pay full price once they earn $108,000 in annual income. Consequently, the federal government will pay most of the premium for lower income families. And to clarify, higher income families pay most of the cost of ACA exchange plans.
Cheaper Health Insurance for who?
Not everyone wants EVERYTHING covered. Higher income families pay full price for unlimited health insurance. Depending on where you are located, this costs more than $20,000 per year in premium payments and includes out of pocket limits up to $10,000. If a higher income family has a substantial health issue, their insurance and out of pocket cost may cost more than $30,000 in a year. Lowering cost is easy…don’t force everyone to buy a luxury product. Right now, less expensive/less comprehensive health insurance is available, and the Trump Whitehouse just reduced limitations on these plans. Short Term Medical plans are less expensive and cover less than ACA plans.
The Trump Whitehouse changed regulations:
Read this article to see how the Trump Administration expanded short term plans and association plans. The Trump Administration reduced limitations on these plans. These plans don’t fit everyone. Short Term Plans can’t replace the ACA exchange plans. Higher income families who pay full price for an ACA exchange plan without government subsidies want an affordable alternative! These families who purchase Short Term Medical plans have the means to pay for preventive care and prescription drug costs out of pocket. For these families, it is cheaper to pay for RX and preventive care out of pocket with a Short Term Plan than it would be to buy an ACA plan and have those expenses covered.
We can help!
Want to see what a short term plan can save your family? Worried about the limitations in coverage? Paducah Insurance can help! Click here to download our white paper describing the current ACA market and the two alternatives we offer.