The Trump Administration’s new proposed rule on health care would raise premiums, out-of-pocket costs, or both for millions of moderate-income families.
As explained in a new CBPP paper, if finalized as proposed, the rule would reduce the amount of health care that marketplace plans have to cover. That would allow individual market insurers to offer plans with higher deductibles and other out-of-pocket costs than they can now sell through the marketplaces.
It would also have the hidden impact of reducing the Affordable Care Act’s (ACA) premium tax credits, which help moderate-income marketplace consumers afford health care. As a result, the rule would force millions of families to choose between higher premiums and worse coverage.
The Administration argues that allowing less generous health plans, with higher deductibles and out-of-pocket costs but lower premiums, will give consumers more choices, draw more people into the marketplace, and, in this way, stabilize the market. But, in fact, this provision of the rule will do just the opposite.
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