Executive Order Starts the Process of Repealing Obamacare

By Vaughn Hoisington | USA

On October 12th, President Donald Trump issued an executive order to promote “health care choice and competition across the United States.” The executive order was passed in response to congressional gridlock on deciding how to fix American healthcare. It is President Trump’s way of beginning the process to repeal and replace Obamacare.

The executive order includes three changes to American healthcare:

  1. Small businesses will be able to band together and purchase large group health insurance across state lines. This expanded access to association health plans allows “more small businesses to avoid many of the [Affordable Care Act’s] costly requirements.”
  2. Short-term, limited duration health insurance plans will be available for longer periods of time. STLDIs—a form of insurance coverage used by people who are in between jobs—are exempt from the rules Obamacare enforces about pre-existing conditions. The lengthening of STLDI terms from the maximum of 3 months to a maximum of 364 days returns the limit to the pre-2016 rules.
  3. The usability of health reimbursement arrangements will be increased. HRAs are employer-funded health insurance accounts that don’t stick with employees that change jobs; the leftover funds in an individual’s HRA stays with the employer when the individual quits their job. The executive order will also “allow HRAs to be used in conjunction with nongroup coverage.” This would allow employees to purchase individual health care plans with the money in their HRA.

The executive order eases some of Obamacare’s regulations in an attempt to lower health insurance premiums through competition across state lines, allowing unemployed individuals to purchase health insurance plans that are exempt from some costly regulations, and by allowing employees to buy individual plans using HRAs.


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