Trump healthcare executive order effect on insurers limited
For insurers, the effect of the US healthcare executive order signed by president Donald Trump is likely to be limited, according to research provider CreditSights.
President Trump signed an executive order that could result in large-scale changes to the health insurance landscape, CrediSights analysts wrote in an Oct. 12 analyst note. The order issues a broad directive to federal agencies to explore regulatory options to expand access to health insurance policies falling outside the requirements of the Affordable Care Act (ACA). The executive order could pave the way for cheaper, more loosely regulated insurance policies, further destabilizing the individual exchange marketplace. Trump is also said to be weighing the enforcement of the requirement that all individuals obtain insurance, as well as cost-sharing subsidies to insurers.
Among key objectives of the executive order is allowing for the sale of lower cost, less comprehensive health plans across state lines, allow small businesses to group together to buy health insurance, lift limits on the sale of short-term insurance policies and expand the ways in which consumers use employer-funded accounts to purchase insurance.
The effect on insurers is rather neutral and possibly even positive, CreditSights analysts concluded. For the most part, the large insurers have already limited their exposure to the exchange marketplace and the executive order could provide another source of revenues, according to the analyst note.
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