Older, sicker Americans will foot the bill for Trump’s healthcare orders
Washington D.C.( CNBC,Oct 12,2017): President Donald Trump signed health-care executive orders Thursday that he said would be “very good for a lot of people.”
Trump was right.
And the orders, if eventually implemented, would be bad for other people, too.
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The core idea behind Trump’s action Thursday was allowing health insurance companies in certain circumstances to sell less expensive policies with fewer benefits than Obamacare has required for the last seven years. Customers for those plans tend to be younger adults who, so long as they remain healthy, don’t need more than that.
In turn, however, that would increase costs for older, sicker customers who need the larger benefits that Obamacare policies provide. Removing healthier, cheaper customers from the Obamacare “risk pool” would make insurance companies raise rates to finance benefits for sicker, costlier ones.