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Under the plan, employers will be able to fund tax-free Health Reimbursement Accounts for their workers, who can then use the money to buy an individual insurance plan — thereby taking another step toward fixing the 77-year-old tax distortion. The rule also lets employers fund a different account to buy cheaper “short-term” plans.
“This subtle, technical tweak has the potential to revolutionize the private health insurance market,” wrote Avik Roy, one of the smartest health care experts around, in the Washington Post.
The administration figures that 800,000 employers will eventually move to HRA plans, and 11 million workers will get their benefits this way.
At the same time, Trump also loosened the federal rules that had needlessly impeded “association health plans.” These are plans that let members of various groups band together to buy insurance. The result will be more competition, and more affordable choices for millions of people.
The Democrats’ response? Attack these changes as another attempt by Trump to “sabotage” Obamacare. What they really fear, however, is that the two new rules will destroy their case for socialized medicine.
The full report is here. Even as Congress continues to drag its feet, and the RINO’s who campaigned on repealing Obamacare reneged on their promises, the Trump administration is finding ways to improve healthcare for Americans.
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