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President Donald J. Trump Is Working To Improve Health Insurance Coverage For American Workers and Help Small Businesses
Press Release:
"The next major priority for me, and for all of us, should be to lower the cost of healthcare and prescription drugs, and to protect patients with preexisting conditions."
OFFERING WORKERS BETTER COVERAGE: President Donald J. Trump is expanding Health Reimbursement Arrangements (HRAs), opening new coverage options for American workers.
EXPANDING AFFORDABLE COVERAGE: Many businesses have struggled with the high costs and complexity of health insurance, leading to less coverage and fewer options for workers.
MORE OPTIONS, LOWER COSTS: President Trump has made it a priority to deliver more health coverage options and lower healthcare costs to Americans.
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— President Donald J. Trump
OFFERING WORKERS BETTER COVERAGE: President Donald J. Trump is expanding Health Reimbursement Arrangements (HRAs), opening new coverage options for American workers.
- The Trump Administration has finalized a rule to expand HRAs, giving businesses a better way to offer health insurance coverage.
- Under the rule, employers will be able to provide their workers with tax-preferred funds to pay for the cost of health insurance coverage that workers purchase in the individual market.
- This rule will particularly benefit small businesses that face significant costs in offering a traditional group health plan and businesses that do not currently offer coverage.
- The rule corrects a major distortion by, in effect, providing the same tax benefits to these new HRAs that are provided today to traditional employer-sponsored plans.
- The Administration expects that 800,000 employers will offer these new HRAs to more than 11 million employees and family members once employers fully adjust to the rule.
- 800,000 Americans who would otherwise be uninsured are projected to gain coverage.
- Under this rule, workers will be better able to shop for plans in the individual market and select coverage that best meets their and their families' needs.
- More people obtaining coverage from the individual market should spur increased competition among insurers and help deliver better coverage options to consumers.
- Employers will be able to offer compensation arrangements that many workers will prefer, meaning that over time the rule could boost work and the overall economy.
- Businesses will also be able to offer a new excepted benefit HRA that workers can use to pay for medical expenses even if they opt out of the employer's traditional group health plan.
EXPANDING AFFORDABLE COVERAGE: Many businesses have struggled with the high costs and complexity of health insurance, leading to less coverage and fewer options for workers.
- Over the last decade, a significant number of small businesses that were offering health insurance to their employees have stopped offering it.
- 80 percent of employers that offer coverage only provide one type of health plan to their employees, leaving workers no choices and plans that may not meet their needs.
- In recent years, more workers who are offered a health plan are opting out.
MORE OPTIONS, LOWER COSTS: President Trump has made it a priority to deliver more health coverage options and lower healthcare costs to Americans.
- President Trump is working to expand association health plans (AHPs), which make it more affordable for small businesses to provide health insurance to their employees.
- Some AHPs show up to 30 percent savings on premiums.
- The President took action to expand short-term, limited-duration plans, increasing choices for Americans facing high premiums and creating flexible options that fit their needs.
- The premiums for these plans can cost less than half the cost of Obamacare premiums.
- Americans will receive $45 billion of annual benefit from the expansion of these plans plus the individual mandate penalty removal, according to the Council of Economic Advisers.
- Nearly 2 million people who would have otherwise been uninsured are expected to gain insurance thanks to the new HRA rule and expanded AHPs and short-term plans.
- Contact: White House
- Press Office
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