How ObamaCare Makes it Difficult for States to Expand Short-Term Insurance
by Maryalene LaPonsie
The repeal of Obamacare didn’t work, and it’s understandable to want to try a different sort of fix for a health insurance system marked by skyrocketing costs. However, state-authorized expansion of short-term insurance plans is most certainly not the right way to do it.
An Executive Order signed by President Donald Trump last October will let states grant greater use of what is known as short-term limited duration insurance (STLDI). While giving power over these types of policy decisions back to the states is to be applauded, state leaders should be very careful before they let more people sign up for longer stints on short-term plans.
Doing so could pull healthy people from the government Health Insurance Marketplace – where those so-called Obamacare plans are sold – which will, in turn, drive up premiums for those who are left. Once premiums get high enough and constituents get angry enough, the political will might be found to finally repeal and replace the Affordable Care Act, aka Obamacare, but in the meantime, we will all pay a steep price.
We will pay in higher health insurance premiums. States themselves will pay in higher health care costs. The federal government will pay in higher subsidies. And then we will pay (again) in higher taxes to cover growing government expenses.