- The Trump administration has released a new rule that will allow Americans greater access to short-term health insurance plans, specifically allowing people to buy health insurance coverage for up to one year.
- Under the Affordable Care Act , or Obamacare, short-term plans, intended to fill gaps in coverage due to events such as job loss, cannot be used for more than three months.
- The new short-term plans offer pared-down benefits and do not have to abide by all Obamacare regulations. For example, the plans can charge higher premiums based on medical history, cap the amount of benefits and do not have to offer the 10 baseline types of care.
- The plans will cost less upfront, but critics say they will siphon more healthy people from Obamacare thereby driving up costs for sicker patients who remain since the risk pool will be smaller. Middle-class enrollees could be hit especially hard since they are don't receive the same level of subsidies as lower-income beneficiaries.
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- Now read: Where Is The Love For CVS?
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