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Trump Plan: Less-Comprehensive Health Plans At Lower Cost

February 20, 2018 By

WASHINGTON (AP) — The Trump administration is clearing the way for a lower-cost alternative to comprehensive medical insurance plans sold under former President Barack Obama’s health care law.

Proposed regulations out Tuesday from the Health and Human Services department allow health insurers to sell so-called “short-term” policies that can last up to 12 months. The plans don’t have to meet the Affordable Care Act’s consumer protections, or offer a robust benefit package.

That means short-term policies will come with lower premiums. The administration is hoping that will help several million consumers who buy individual plans but aren’t eligible for subsidies under the Obama health care law.

Critics say short-term policies will draw healthy people away from the health law’s insurance markets, potentially making them less stable and raising subsidy costs for taxpayers.

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