Over the weekend it was announced that President Trump was going to ditch restrictions that banned people from buying health instance across state lines. For the love of God, he’s going to allow competition and not force you to buy from your state monopoly. While this might sound wonderful, it will expedite the death of Obamacare — which is probably the gameplay here.
Trump can’t get his way, so he’s gonna burrrrn the whole kit and caboodle down.
Source: Washington Examiner
The plans offered by associations would be less expensive because they wouldn’t have the same requirements as Obamacare coverage. For instance, they wouldn’t be required to cover customers with pre-existing illnesses and could either deny coverage or charge these customers more. They also would not be required to provide coverage for a range of medical care, from addiction to maternity services. Insurers would be likely to sell coverage from a state with the fewest restrictions, which is why its supporters bill it as a move that would allow a long-stated conservative goal to sell health insurance across state lines.
Association health plans used to be more common before Obamacare, which placed restrictions on their use.
Lifting these protections would offer less comprehensive coverage, but would also make health plans less expensive. Critics worry that they set people up for “junk insurance” and would further destabilize the Obamacare exchanges, which already are plagued with mass exits by insurers and double-digit premium hikes. The move, critics say, could result in an even sicker population on the exchanges while healthier customers are picked off into the association health plans.
Still, the proposal is popular with conservatives. Middle class customers who don’t receive subsidies under Obamacare are facing the prospect of buying more expensive coverage in 2018 through Obamacare’s exchanges, and could avail themselves of the option. Through a short-term health insurance option, they face similar coverage as those sold on association health plans.
The increases these customers face come as a result of lack of profitability in the markets as well as vast uncertainty over what the Republican-controlled Congress and the Trump administration would do about the law as they sought for months to repeal or overhaul portions of it.
A backdoor way of totally destroying Obamacare and there is nothing anyone can do about it — chaos theory.
ESRX -5%, ABC -3%, CYH -6%, THC -5%, LPNT -3%, CVS -3%, DVA -8.5%, AAC -5.5%, ACHC -4%.
The only outlier: HIIQ.
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Health Insurance Innovations: Trump rollback benefits HIIQ — Canaccord Genuity (18.05 +1.15)
Canaccord notes that in light of WSJ reports that President Trump intends to roll back certain health insurance regulations concerning short-term medical insurance, which should have a direct benefit to Tampa-based Health Insurance Innovations (HIIQ), firm feels, “This should be positive for HIIQ: Even though 2Q’17 was still a strong quarter, we believe results would have been even better (specifically at Agile) if the Obama policy did not go into effect; thus, we believe the reversal of the three-month limitation rule will be positive for growth at Agile in addition to providing a greater sense of legitimacy for STM insurance, especially in light of the recent negative sentiment generated by the various short reports. Furthermore, we would point out that a main driver of the stock’s performance since Trump won the election was the potential for him to de-regulate the insurance industry and reverse the three-month limitation; thus, it is encouraging to see this play out.”