News By Tag
News By Place
Trump Changes Healthcare with Executive Order, Insurance Agent Backed
Last week President Trump signed an executive order on health care, to cause momentum to change with the Affordable Care Act. Taking this action increases healthcare choices for millions of Americans.
By: Butch Zemar
It is entirely possible that this could alter the direction of the Affordable Care Act. Many are seeing massive increases and more out-of-pocket. They are looking for alternatives, but they are drying up.
A few of the items in the executive order are:
• The order directs the Secretary of labor to consider to expand access to Association Health Plans (AHPs), which could allow employers to join forces across state lines.
• Expanding coverage through low-cost, short-term health insurance plan beyond the 91-day restriction they have now.
• Allow Health Reimbursement Arrangements (HRAs) to be used as a tax-free vehicle for healthcare expenses including deductibles and copayments. This will also include reimbursement for health insurance premiums for non-group coverage.
• The Trump administration will cut-off $7 billion in cost-sharing reduction payments to the insurance companies this year.
"Many younger folks need lower cost health insurance for longer than 90 days, the current limit for the short-term medical plans. They cannot afford the premiums on the Exchange (or directly through a participating carrier)", says Butch Zemar, Benefits Advisor at Corkill Insurance Agency.
"Many of them do not qualify for a tax credit due to the income being just high enough, even at $25,000 a year, to be eligible for any assistance from the government", Zemar continues.
Others work for an employer willing to help but are not in a position to offer group health insurance for some reason. With some of the help from the employer, it will make it more affordable for their employees and create company loyalty. This is good as employers are competing for good talent.
In the end, we are all working to making access to health care coverage easier and making it more affordable. The Affordable Care Act started to address it but didn't finish. One can hope that what follows after this executive order will help move closer to that goal.
Butch Zemar is a 2014 Broker of the Year Finalist, an insurance specialist, author and Benefits Advisor at Corkill Insurance Agency. Butch Zemar is actively developing informative resources, such as articles and videos that deliver vital information on healthcare reform and employer options. Corkill Insurance Agency has consultative packages for employers, as well as insurance solutions, to keep employers compliant with healthcare reform and keep skyrocketing premiums under control. For more information please visit http://www.ButchZemar.com