President Donald Trump just took a pivotal step to make healthcare affordable again.
On Sept. 4, his administration announced that most Americans will now be eligible to buy what are known as ‘copper plans’ on the ObamaCare exchanges. Before this reform, nearly all Americans were legally barred from buying these much more affordable plans. But now working families can get the plans they need at a price they can afford – and many uninsured people will likely get covered as a result.
The president is fixing one of the fundamental problems with ObamaCare. That law forced Americans who get their insurance on the individual market to buy costly plans, and in the 11 years since the law went into effect, they’ve gotten even pricier.
ObamaCare plans have risen by nearly 200% since 2013. What’s more, prices for all plans are expected to rise another 18% by the start of next year.
ObamaCare’s authors knew their law would make healthcare more expensive. That’s why they quietly created an actually affordable option, which they called ‘copper plans.’ These plans cover pre-existing conditions, essential health benefits and everything else that ObamaCare requires, but they come with slightly higher out-of-pocket costs in exchange for dramatically lower premiums.
Tens of millions of people could benefit from these options, but the federal government only allowed a minuscule number of Americans to buy them. Basically, you had to be under the age of 30. While anyone else could apply for a ‘hardship exemption’ to become eligible, the federal government rarely, if ever, granted these requests, forcing people to pay much more.
No longer. The Trump administration has effectively said that most Americans are now eligible for a hardship exemption, meaning anyone can buy a copper plan. Research from my organization shows that, on average, copper plans have 22% lower premiums than the typical bronze plan – and they cost up to 60% less than ObamaCare’s gold plans. By choosing these options, families can literally save hundreds or even thousands of dollars per year.
The return of affordability is reason enough to praise the president’s move. But this reform will have the added benefit of empowering uninsured people to finally get coverage they can afford. Nearly 27 million Americans are uninsured, many – if not most – because health insurance costs too much. They’ve needed access to copper plans, but their own government has blocked them. Now they’re free to buy better coverage.
Crucially, the uninsured population has the exact groups of people who can help the ObamaCare exchanges become more sustainable. The second and third-largest groups of the uninsured are between the ages of 26 and 34 and 35 and 44, respectively. These tend to be healthier people who don’t need costly plans because they don’t need much health care. As such, they don’t mind the higher out-of-pocket costs that come with the typical copper plan.
By helping to get more of these people covered, President Trump may very well stop the doom loop that has defined ObamaCare – a doom loop of ever-higher prices driving more and more people out of the markets altogether. And with fewer uninsured Americans and more people on private coverage, hospitals will see their uncompensated care costs drop. So hospitals – especially rural hospitals – will be on stronger footing.
This single reform could help millions – if not tens of millions – get more affordable coverage. It also meshes well with another commonsense policy issued by President Trump. He has reversed the Biden administration’s restrictions on short-term plans, empowering Americans to buy even more affordable coverage options for years at a time.
This reform will also expand coverage to more uninsured people, while enabling others to get plans that better fit their budgets. We’re talking Americans of all ages who are in between jobs and looking for work, those who’ve retired but aren’t yet eligible for Medicare, and working families desperately looking for affordable coverage.
Americans urgently need this healthcare relief. While Democrats and the media are demanding that Republicans merely expand ObamaCare subsidies to prevent people from losing coverage, that’s not a real or sustainable solution.
More government subsidies only make health insurance more expensive, not less. President Trump has taken the better road by giving Americans greater access to more affordable plans.
When it comes to helping families out, the president’s short-term reform will make a long-term difference, and his copper plans reform gets a gold star.
