The Biden administration on Friday announced a new regulation that would deprive individuals of the choice of buying less extensive, but less expensive, health insurance.
To provide a bit of context, when Obamacare passed, it required that all insurance policies provide a list of government-mandated benefits. As a result of this and other regulatory changes, the price of insurance rose dramatically, putting it out of reach for those who did not qualify for subsidies. Those with limited health-care needs were forced to choose between purchasing expensive Obamacare plans that included many more benefits than they would use, or going uninsured.
After Republicans failed to repeal Obamacare, the Trump administration looked for ways to provide consumers with relief from the onerous aspects of the law. Obamacare did allow for certain short-term plans to escape the regulatory requirements of the law, but they were limited to three months. The Trump administration issued a new rule that allowed these plans to be issued for twelve months, and get renewed for up to three years. By 2019, 3 million consumers had decided to enroll in the plans.
But, under a new rule proposed Friday, the Biden administration would limit these plans to three months, and allow them to be renewed only for up to one month. If it goes into effect, millions of Americans who would have preferred to use such plans will have to decide whether to pony up more money for Obamacare insurance or forgo coverage.
Democrats have long attacked short-term plans as “junk” because they carry higher deductibles and offer fewer benefits. But in a free society, individuals, particularly those with more limited health-care needs, should have the choice to save money by purchasing less generous insurance.
The going rate for a standard Obamacare “silver” plan is currently $4,283, on average nationally, according to the Kaiser Family Foundation’s health-insurance calculator. It isn’t surprising that millions of Americans have sought other options. Now Biden wants to cut off the one escape hatch that existed from Obamacare, subjecting Americans to higher costs and limiting choices.