As well, the President's order expands the term of short-term insurance policies, from the Obama limiting three months to nearly a year; and the order lets employers use tax-free funds to to help workers pay for any medical expenses other than for health policies.
AHPs let individuals by medical bills insurance through these plans. In a true free-market fix of Obamacare, President Trump's executive action well let millions of Americans buy inexpensive insurance in the coming months. Through President Trump's AHP legalization, Americans now can escape Obama's ill-conceived individual market subsidy scheme.
It will be legal for AHP members to buy insurance across state lines. This shall enforce competition as insurers will feel the pressure to better their offerings. Many Obamacare regulations will be waived for those in these groups, including costly mandates on what the plans must cover.
A key provision of the President's action will be a movement toward restoration of risk pools. Healthy Americans who pose lower risks of filing claims likely will buy insurance plans with lower rates. This is the same way as all other insurance works, for example lower rates for better car drivers and higher rates for those who speed and crash cars.
Expect trade groups, local chambers of commerce to offer AHPs.
President Trump's positive action will let organizations like the National Retail Federation compete against large firms for better workers as larger firms have held an advantage by offering better medical bills insurance perquisites.
Unlike coercive Obamacare, President Trump's removal of abusive government regulation is not a government mandate. Nor is it a fine disguised as a tax.
A major flaw of Obamacare has everyone of the same age group pay the same insurance rates regardless of their health status. Thus, for those with chronic diseases, Obamacare merely becomes an open-ended credit card with everyone paying the bills. Those who are healthy merely end up paying taxes disguised as monthly insurance premiums.
Of course, a litany of the corrupted have stepped forth to complain — state insurance commissioners, big insurance firm execs who are getting rich through restricted competition Obamacare, and other assorted leftists, socialists, communists.
Expect lawsuits by those with a vested interest in Obamacare to sue President Trump and his administration.
For more on Obamacare from the True Dollar Journal, click here.
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