Trump wants to expand short-term health insurance plans. That could hit some Coloradans in the wallet, according to a new report
The Urban Institute estimates Colorado premiums will rise 18 percent
February 28, 2018
Premiums for people in Colorado who buy health insurance on their own could rise substantially again next year, this time as the result of a recent Trump administration proposal to expand short-term coverage, according to a report released Tuesday.
Short-term plans are exempt from the rules of the Affordable Care Act, meaning that they often cost — and cover — a lot less than longer-term plans. The Trump proposal would allow short-term plans to last an entire year, creating a cheaper option for healthy people who don't need the Affordable Care Act's protections for pre-existing conditions or other guaranteed benefits. In the Obama administration, the plans were limited to covering only three months at a time.
Trump administration officials have talked up the proposal as a way for people to cut health insurance costs and find a plan that better fits their needs.
But the new report, released by the Urban Institute, argues that savings for some people will end up as higher costs for others. By pulling healthy people out of the regular insurance pool, the policy would leave those remaining to pay more, the report concludes. In Colorado, according to the report, that will lead to an 18 percent increase in premium prices for people who buy insurance themselves instead of getting it through their employers.