The Trump administration is rolling out a plan to allow Americans to purchase temporary coverage plans that will cost from 50 to 80 percent less than Obamacare exchange insurance plans, but for some people, it would be a better option for Americans to keep their Affordable Healthcare Act coverage, Health and Human Services Secretary Alex Azar said Wednesday.
"This is relief, perhaps, for millions of Americans, because they have been left behind by the Affordable Care Act's false promises that they would have insurance, that everybody would have affordable insurance, that it would cover every doctor they wanted," Azar told Fox News' "Fox and Friends."
The plans can be purchased for up to 12 months, and renewed for up to three years, he said. However, they differ from Affordable Care Act plans in that they require medical underwriting and still "may not cover every condition," said Azar.
"For many who have pre-existing conditions or who have other health worries, the Obamacare plans might be right for them," he said..
Obamacare left 28 million Americans without access to affordable insurance, he added, but the new short-term limited duration plans will help fill that gap.
Further, unlike with the ACA plans, people purchasing the short-term policies must be approved through a medical underwriting procedure, and "the insurer would have to decide to take you," said Azar. "It's a really important option for a lot of people in transition between jobs, those gig economy workers who work on their own as independent contractors, folks struggling with three part-time jobs and don't get insurance from any one employer."
The move, he added, is about putting the individual and the states back in the driver's seat."
The Trump administration, though is trying to be clear that the option may not be right for everyone, he pointed out.
"We have actually required more significant and transparent disclosures of all of these provisions than the Obama administration has," said Azar. "We are trying to make sure that people go in with their eyes open, but for many people this may be the right option for them."
Critics, though, call the short-term plans "junk insurance" and say policy holders could get an unwelcome surprise if they become seriously ill. Further, they fear the plans and their much-lower price tags will entice people away from the ACA's markets and raise premiums for people who are left.
Sandy Fitzgerald ✉
Sandy Fitzgerald has more than three decades in journalism and serves as a general assignment writer for Newsmax covering news, media, and politics.
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