With each passing day, it gets clearer and clearer that Obamacare has become unaffordable for more and more people. Since the law went into effect, premiums for individual coverage have more than doubled, patient choice has declined, and state exchanges have collapsed. Although Democrats would like nothing more than to blame President Trump for these problems, high healthcare costs and lack of choice are a direct result of Obamacare’s rigid and inflexible regulations.
This is why we introduced the Flexibility Through Lower Expenses Health Care (FLEX) Act, a bill that will reverse some of the damaging effects of Obamacare by lowering costs and increasing healthcare choices for more people. More specifically, our bill codifies into law the Trump administration’s rules on short-term limited-duration insurance and association health plans.
Making these rules into law brings with them a whole host of benefits. Association health plans allow small businesses and self-employed workers to band together to buy health insurance coverage as if they were one large employer. For example, under an association health plan, carpenters across the country could band together to form an association and qualify for group health insurance. Small businesses that can’t afford health insurance on their own could join forces with other small businesses to act as one large employer. This is beneficial because small businesses usually pay more for health insurance than large employers. Allowing them to band together as one large employer makes health insurance more affordable for millions of small businesses across the country.
Critics of association health plans argue that these plans “undermine” some of the key requirements of Obamacare, such as coverage for essential health benefits and protections for those with pre-existing conditions. Although current law does not require association health plans to cover essential health benefits, they do already voluntarily cover people with pre-existing conditions, and thus do not exclude people because of their prior health history. Further, association health plans offer an advantage over Obamacare in the sense that they offer small businesses more affordable health insurance options.
Similar to the flexibility and affordability of association health plans, short-term limited-duration insurance plans allow individuals to purchase temporary health insurance plans for up to one year and to renew or extend that coverage for a maximum of three years. These plans are excellent options for people experiencing gaps in coverage, such as those transitioning between jobs, who may not have access to employer-based coverage or who may not qualify for federal subsidies in the individual market.
Short-term limited-duration insurance plans are also advantageous for people who desire more affordable health insurance options than the plans offered on Obamacare exchanges. Studies show that, on average, short-term plans cost 80% less per month than Obamacare plans, making them terrific options for people who would still like to purchase affordable health insurance, but whose incomes are too high to qualify for federal subsidies under Obamacare.
It’s time for Congress to follow in the footsteps of the Trump administration and make short-term limited-duration insurance and association health plans permanent. Everyone deserves affordable health insurance options that are free from Obamacare’s crippling regulations.
We will continue to support policies that lower healthcare costs while empowering individuals and families to be in charge of making their healthcare decisions, not the federal government.
Rep. Ted Budd, a Republican, represents North Carolina’s 13th Congressional District. Rep. Andy Harris represents Maryland’s 1st Congressional District and is a practicing anesthesiologist.
