A federal judge on Friday
upheld the Trump administration's expansion of health insurance plans that
don't meet ObamaCare's coverage requirements.
U.S. District Judge
Richard Leon in Washington ruled against the insurance companies that sued the
administration in an attempt to block the rules.
"Not only is any
potential negative impact from the 2018 rule minimal, but its benefits are
undeniable," Leon wrote about the regulations.
The plans aims to
"minimize the harm and expense" for individuals who might otherwise
decide not to purchase insurance because of high premiums, Leon added.
The Trump administration
issued a regulation last year allowing short-term health care plans to last up
to 12 months instead of three. These plans were originally intended as an
option for individuals who need to bridge a gap in health insurance
coverage.
But the administration
extended the length of time they can be sold to provide customers with
more affordable options.
The plans generally cost
less because they don’t have to comply with coverage requirements set by the
Affordable Care Act (ACA), such as maternity care and prescription drugs.
The short-term plans can
also deny coverage to sick people, which ObamaCare insurers are prohibited
from doing.
Insurers who sued the
administration said this put them at an unfair disadvantage because
they're required to cover these services and must charge higher premiums. They
argued the availability of short-term plans could draw away their healthy,
young customers who might not feel like they need comprehensive
insurance.
But Leon wrote in his
ruling that the plaintiffs were unable to prove that the changes actually
impacted their enrollment in 2019.
The Association for
Community Affiliated Plans (ACAP), the plaintiff in the case, said in a
statement that it would appeal the decision.
"We remain firm in
our contention that the Trump administration’s decision to expand dramatically
the sale of junk insurance violates the Affordable Care Act and is arbitrary
and capricious," said Margaret Murray, chief executive officer of
ACAP.
“We are confident that
the appellate court will see this differently.”
The Trump administration
has been looking for ways to dismantle ObamaCare through regulation after
Congress failed to repeal it in 2017.
But its success has been
mixed. A federal judge blocked the administration's regulation in March that
would have allowed small businesses to band together to sell association health
plans that don't have to follow ObamaCare's rules.
The judge called the
plans an "end run around the ACA."
A federal judge in
Washington has also blocked the administration's Medicaid work requirements in
Kentucky and Arkansas.
Meanwhile, the
administration is supporting a lawsuit filed by Republican attorneys general
that seeks to overturn ObamaCare.
No comments:
Post a Comment