Colbert fears a two-tiered insurance market: One would offer traditional Obamacare protections for essential benefits where people get what they need but is even more expensive.
These short-term plans would have lower premiums but also have fewer benefits. "In either case the rule does not increase the number of Georgians with health insurance", he said.
"The greatest decreases in the uninsured rate since 2013 were among adults who were poor or almost poor", the CDC study noted.
"Today's announcement is about giving Americans who have been priced out of the market new, more affordable coverage options and allowing them, not the government, to make decisions about what works best for them and their families", CMS Administrator Seema Verma said in a press conference Tuesday morning.
Stakeholders are encouraged to provide input about expedited short-term plan enrollment and other policies that could promote the effectiveness of expanding health plan availability. By broadening the definition of short-term insurance, the Trump administration is opening more loopholes for more people to buy insurance outside the health care law's marketplaces.
Both she and Azar noted that the average premium for individual healthcare coverage options "more than doubled" between 2013 and 2017 in the 39 states that run on the federal insurance exchange.
The proposed rule reinstates an option that the Obama Administration killed in 2016 when it stipulated that a plan could last only three months.
If the administration were actually serious about reducing health care costs, it would try to improve the A.C.A., not dismantle it.
"These are very narrow plans and will be attractive to people who are healthy or don't understand their limitations", says Linda Blumberg, a senior fellow in the Health Policy Center at the Urban Institute. The Obama administration limited these plans down to a maximum length of three-months in an effort to ensure healthier, younger consumers or those that would otherwise choose non-Obamacare plans would still stay in the ACA marketplace. What's more, taxpayers would be on the hook for some of the costs because the subsidies are based on the cost of premiums. With that barrier removed next year, the introduction of the skimpy plans could upend the health care marketplace.
HHS said the plans are a temporary solution for people who are in between jobs or don't like their current policy and searching for long-term alternative. They said that the new plans cover essential health benefits, but not all 10. The proposal will be open for comment for 60 days, after which officials will put it in final form. If a person exceeds this coverage then the new plan will no longer cover them.
Levitt says the plans may not be appealing to much of the now uninsured population, more than half of whom could qualify for free or heavily subsidized plans in the ACA market.
The White House is also proposing to expand the use of association plans, which could serve as a cheaper and less generous alternative to Obamacare for small businesses and self-employed workers, but could raise prices for companies and individuals who need more comprehensive care. "So we're caught in this circumstance where we're going to continue to fight for repeal; but in the meantime, there are millions of people, families all across the country, who are still getting crushed by ObamaCare - and if the Trump administration wants to throw them a lifeline, we're going to support that as well". And it recently began allowing states like Kentucky to take Medicaid benefits away from people who are not employed, creating a system of red tape meant to hurt poor people who have lost their jobs or are unable to work.