Trump’s executive action could erode marketplace built under Obamacare

Attempts to repeal portions of the Affordable Care Act have failed in the past several months, leading President Donald Trump to issue an executive order expanding access to cheaper, less comprehensive health care plans.

The order, signed on Oct. 12, instructs federal agencies to remove certain limitations on "association health plans" and expand the availability of short-term health plans, both of which can skirt certain minimum coverage requirements included in the Affordable Care Act and state laws.

These changes will not immediately take effect; federal agencies will have to figure out how to act on Trump's directions.

The executive action orders agencies to explore ways in which the government can expand access to short-term health plans, which are available to individuals on a three-month basis and meant for people who are in-between health care coverage plans. Under the instructions, association health plans would be allowed to sell plans across state lines; those plans allow small businesses to band together to create cheaper health care plans that offer fewer benefits.

The order was intended to create more options for individuals seeking health insurance and help stimulate competition among insurers. Some health policy advocates worry that it could disrupt the insurance marketplace in a way that would drive up health care costs for elderly individuals and people with medical conditions.

Chris Hansen, the president of the American Cancer Society Cancer Action Network, criticized the action in a statement, saying the changes would create a rift in insurance coverage.

"If younger and healthier people leave the market, people with serious illnesses like cancer will be left facing higher and higher premiums with few, if any, insurance choices," Hansen said. "Moreover, those who purchase cheap plans are likely to discover their coverage is inadequate when an unexpected health crisis happens, leaving them financially devastated and costing the health care system more overall."

The National Association of Insurance Commissioners also raised concerns about the action, saying it could hurt "already fragile markets."

It will be months before changes are seen in the marketplace.

Trump has faced several hurdles in his plan to repeal Obamacare since taking office. Congress was unable to pass a repeal bill before a temporary rule allowing the Senate to move health care legislation through the chamber with only 50 votes ended on Sept. 30.

In an Oct. 10 tweet, Trump signaled he would use executive powers to move forward on his goal, saying: "Since Congress can't get its act together on HealthCare, I will be using the power of the pen to give great HealthCare to many people - FAST"

He dealt another blow to Obamacare regulations on Oct. 6, when his administration expanded employers' ability to exclude coverage for contraceptives in their health insurance plans.

"Today is only the beginning," Trump said during the most recent executive order signing. "In the coming months, we plan to take new measures to provide our people with even more relief and more freedom."

However, Trump can only accomplish so much with executive orders. He might be able to chip away at certain Obamacare provisions, but to fulfill his campaign promise, he will have to get Congress to pass legislation. We continue to rate this Stalled.