A new short-term healthcare coverage option being proposed by the Trump administration will lead to three million people ditching Obamacare, according to a study published by health consulting firm Avalare, as reported by The Hill.
Health insurers under association health plans, or AHPs, would be allowed to sell individual consumers so-called "short-term" policies that can last up to a year and have lower premiums with fewer benefits. The expansion for consumers would come with a disclaimer, as the plans do not meet the Affordable Care Act's consumer protections, such as guaranteed coverage or the requirement to offer hearty benefits.
"Consumers are always looking for a new low-cost health insurance option," Dan Mendelson, President of Avalere said, "but migration of healthy people to a new product will ultimately take a toll on what is presently being sold in the market."
Health and Human Services Secretary Alez Azar promises the new rule will help more Americans find affordable coverage that suits their needs.
"We need to be opening up more affordable alternatives," Azar told reporters one week ago. "It's one step in the direction of providing Americans with alternatives that are both more affordable and more suited to individual and family circumstances."
"The status quo is failing too many Americans, who face skyrocketing costs and fewer and fewer choices," he added. "The Trump administration is taking action so individuals and families have access to quality, affordable healthcare that works for them."
The proposed rule, according to Avalare, would lead to higher premiums, an increase in the number of uninsured Americans, an additional 3.2 million people enrolled in AHP and lower premiums for enrollees who choose AHPs.