Today, President Trump signed an executive order intended to improve access, increase choices, and lower costs for health care. The order begins with a statement that it is the policy of the executive branch to facilitate the purchase of insurance across state lines. The order contains three primary directives addressing Association Health Plans, Short-term Insurance Policies, and Health Reimbursement Arrangements:
- Directing the Secretary of Labor to consider proposing regulations or revising guidance to allow more employers to form association health plans (AHPs) within 60 days of the date of the order.
- Directing the Secretaries of the Treasury, Labor, and Health and Human Services to consider proposing regulations or revising guidance to expand the availability of short-term limited duration insurance within 60 days of the date of the order. Specifically, the Secretaries are directed to consider allowing such policies to cover longer periods and to be renewed by the consumer.
- Directing the Secretaries of the Treasury, Labor, and Health and Human Services to consider proposing regulations or revising guidance to increase the usability of Health Reimbursement Arrangements (HRAs) and to expand employers’ ability to offer HRAs to employees within 120 days of the date of the order.
The order also directs HHS, in consultation with the secretaries of the Treasury, Labor, and FTC, to report to the president on state and federal laws, regulations and policies that limit health competition and choice.
Cornerstone will continue to monitor any proposed changes in response to the President’s executive order. While this order may mark the beginning of significant changes to health insurance markets, it remains important for brokers to educate their clients on the current ACA regulations and potential penalties throughout this upcoming open enrollment.