Today President Trump signed an Executive Order with significant implications to both Obamacare and health insurance markets in general. Here are highlights from the Order which will be reviewed in more detail later.
- Loosen traditional DOL interpretations of “bona fide” association to permit more diverse associations with less in common among the employers.
“Sec. 2. Expanded Access to Association Health Plans. Within 60 days of the date of this order, the Secretary of Labor shall consider proposing regulations or revising guidance, consistent with law, to expand access to health coverage by allowing more employers to form AHPs. To the extent permitted by law and supported by sound policy, the Secretary should consider expanding the conditions that satisfy the commonality of interest requirements under current Department of Labor advisory opinions interpreting the definition of an “employer” under section 3(5) of the Employee Retirement Income Security Act of 1974. The Secretary of Labor should also consider ways to promote AHP formation on the basis of common geography or industry.”
- More plan design options for limited benefit plans with fewer benefits than “essential benefits.”
“Sec. 3. Expanded Availability of Short-term, Limited‑Duration Insurance. Within 60 days of the date of this order, the Secretaries of the Treasury, Labor, and Health and Human Services shall consider proposing regulations or revising guidance, consistent with law, to expand the availability of STLDI. To the extent permitted by law and
supported by sound policy, the Secretaries should consider allowing such insurance to cover longer periods and be renewed by the consumer.”
- Expansion of permitted Health Reimbursement Arrangements.
“Sec. 4. Expanded Availability and Permitted Use of Health Reimbursement Arrangements. Within 120 days of the date of this order, the Secretaries of the Treasury, Labor, and Health and Human Services shall consider proposing
regulations or revising guidance, to the extent permitted by law and supported by sound policy, to increase the usability of HRAs, to expand employers’ ability to offer HRAs to their employees, and to allow HRAs to be used in conjunction with nongroup coverage.”
Agencies have 180 days to come up with methods to promote these goals.
