In the midst of a suit brought on by 12 Democratic attorney generals against the Trump administration, the President last week bragged about his new health plans and said they are already generating “record business.”
Available to the public Sept. 1, the association health plans take a jab at the Affordable Care Act (ACA), which deliberately tried to prevent the sale of cheaper health insurance in exchange for basic benefits.
“We just opened about two months ago and I’m hearing that the numbers are incredible — the numbers of people getting really, really good healthcare instead of Obamacare, which is a disaster,” said President Trump.
The suit filed by attorney generals denounced the new health plans as a violation of the ACA, Administrative Procedure Act, and the Employee Retirement Income Security Act.
“…the rule increases the risk of fraud and harm to consumers, requires States to redirect significant enforcement resources to curb those risks, and jeopardizes state efforts to protect their residents through stronger regulation. The rule is unlawful and should be vacated.”
Announced last month, the association health plans allow self-employed individuals and small businesses to band together and shop for cheaper plans with cheaper benefits.
Based on the proposal in January, the Congressional Budget Office (CBO) estimated 4 million people will join the new association health plans.
D.C.’s attorney general Karl Racine said, “these junk plans offer substandard health coverage and threaten our local insurance market.”
Check out The Hill’s story here.
For more information on the lawsuit, visit Modern Healthcare.