Trump officials push less generous Obamacare plans Trump administration's answer to ballooning Obamacare premiums: Less generous coverage
Trump administration officials, looking at the possible impact of large insurance premium increases for millions of next year's Obamacare customers, want more people to consider plans with less generous benefits and high deductibles.
The agency overseeing the ACA announced early this month that it would expand eligibility for "catastrophic" plans sold in Affordable Care Act online marketplaces. These plans require people to spend more than
The move reflects growing concern among
A small, bipartisan group of House lawmakers introduced legislation to extend the enhanced COVID-era subsidies for one more year, which would keep them in place through midterm congressional elections in fall 2026.
However, the fate of that legislation is uncertain, with many
"They spent the last 15 years against the ACA, so a lot will be steadfast, but others are worried about the effect of massively spiked premiums on their constituents," noted a Democratic
Catastrophic plans are a little-known type of Obamacare policy that have previously been limited mainly to people under age 30. While they come with lower monthly premiums than other types of ACA plans, the coverage has higher annual deductibles, which are set at the out-of-pocket maximum for the year:
A deductible is the amount patients must spend on health care before insurance plans pay for most services. Catastrophic plans do cover three primary care visits a year without having to pay the full deductible, and, as with other ACA policies, policyholders pay nothing for preventive services such as some cancer screenings and vaccines.
The catastrophic plans will automatically show up on the federal marketplace, healthcare.gov, for consumers who lose tax credit coverage entirely next year due to their household income. Another category of consumers - people who continue to qualify for tax credits but not for subsidies that reduce out-of-pocket costs - may also be eligible but must send in paperwork.
"By expanding access to catastrophic plans, we are making sure hardworking people who face unexpected hardships can get affordable coverage that protects them from devastating medical costs,"
It isn't clear whether the policy changes will make the plans more attractive to consumers. Catastrophic plans aren't available in all states, and the size of the deductibles can be off-putting.
"It's a ton of money," said
Catastrophic plans have had limited appeal, with only about 54,000 out of Obamacare's 24 million enrollees currently opting for the coverage, according to government data, Norris said.
"Uptake has always been quite low," said
CMS plans to grant people a "hardship" designation to enroll in catastrophic plans if they lose eligibility for ACA tax credits next year. Most likely to qualify are people earning more than four times the federal poverty rate (
It's also unclear how much premiums will cost. Insurers, reacting to the new administration guidance, might seek to recalculate their rates based on what they estimate may be an influx of older people into the plans, Norris said.
AHIP, the insurance industry lobbying group, is pushing hard for the larger tax credits to be extended. It did not comment specifically on how the new guidance might affect catastrophic health plan premiums. Still, AHIP spokesperson
There are other hurdles. Norris said insurers don't offer plans at all in 10 states:


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