SABC News - Trumps not-so-quick fixes to undo Obamacare:Thursday 12 October 2017

Trump's not-so-quick fixes to undo Obamacare

Thursday 12 October 2017 21:30

REUTERS

Donald Trump's plan rests on one main pillar, the creation of associations in which multiple employers can band together to buy health plans under the same law that large employers do.

Donald Trump's plan rests on one main pillar, the creation of associations in which multiple employers can band together to buy health plans under the same law that large employers do.(REUTERS)

President Donald Trump on Thursday prescribed a quick fix to undo Obamacare through executive order after Republicans in the United States Congress failed to repeal and replace the healthcare law as promised, but industry experts said there are many steps involved that will slow it down.

Trump's plan rests on one main pillar, the creation of associations in which multiple employers can band together to buy health plans under the same law that large employer’s do.

That law rests outside of many of the mandates of the 2010 Affordable Care Act, dubbed Obamacare.

Here are some questions and answers about these plans.

Potentially, small business employees and maybe even more people would be able to buy such plans.

The executive order envisions that associations will form to offer these new health plans for small businesses that want to join together.

It is not clear from the order whether freelance workers or other individuals interested in buying health insurance outside of Obamacare would be able to access these association plans through other routes.

That may be decided in the federal rule-making process, which takes months.

There currently are some associations that have united to buy health insurance, but the order imagines the creation of many new associations around the country.

By allowing small businesses to join forces to create a larger pool of employees when buying insurance, these associations can decrease the risk of having a higher proportion of members with costly illnesses that can drive up coverage costs for small employers.

It is not clear who would create these groups, but there are some employer trade groups, like the National Restaurant Association, that have advocated this year to allow restaurants to band together to buy healthcare.

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