Trump Broke Constitutional Law by Attacking Obamacare, Lawsuit Says

Trump Broke Constitutional Law by Attacking Obamacare, Lawsuit Says

Four cities filed a federal lawsuit Thursday against the Trump administration, claiming the president is intentionally undermining the Affordable Care Act and violating a Constitutional duty to "faithfully execute" existing law.

However, Edmund F. Haislmaier, senior health policy researcher of the conservative Heritage Foundation, said people who are already sick and getting Obamacare subsidies will not be affected.

Insurer groups warned that the action would result in higher premiums.

Health and Human Services Secretary Alex Azar, and Centers for Medicare & Medicaid Services Administrator Seema Verma are also named as codefendants with the president in the 130-page suit. "We make no representation that it's equivalent coverage".

These plans allow people to insure against the risk of catastrophic illnesses, the kinds that can bring financial ruin to a formerly healthy person, without all the bells and whistles-you won't have to insure for services you are unlikely to use. "They are not going to cover anything related to a pre-existing condition". ACAP has long opposed this ... proposal as an arbitrary and capricious effort to do a regulatory end-run around the patient protections in the Affordable Care Act.

"The people who benefit most from this plan are self-employed or small business owners in the individual market that were hit the hardest by the skyrocketing premiums under Obamacare", said Haislmaier.

Azar said the new plans are tailor-made for the 'gig economy'. The law extended health insurance to some 20 million Americans. They are suing to force the administration to restore the funding that was slashed for outreach and enrollment assistance, extend the 2019 open enrollment period, and steer people towards comprehensive ACA plans and away from skimpy short-term plans that do not cover pre-existing conditions.

The new rule stems from an executive order President Donald Trump signed in October aimed at boosting competition, giving consumers more choices and lowering premiums.

More news: Donald Trump downplays Ivanka's remarks on media

Under the Affordable Care Act, insurance companies are required to spend 80 to 85 percent of their premiums on health care or refund money to their customers.

'It's a way better alternative to not being insured, ' said Jeff Smedsrud of Pivot Health.

The goal was to ensure that everyone has access to quality health coverage without discriminating against those who have pre-existing medical conditions.

Short-term plans join "association health plans" for small businesses as the administration promotes lower-cost insurance options that cover less.

Association for Community Affiliated Plans CEO Margaret A. Murray said in a prepared statement: "Fake insurance is no substitute for real coverage".

However, these plans also don't have to adhere to all of Obamacare's rules, particularly the one requiring insurers to offer comprehensive coverage.

The nonpartisan Congressional Budget Office estimates that roughly 6 million more people will eventually enroll in either an association plan or a short-term plan. The administration says it expects about 1.6 million people to pick a short-term plan when the plans are fully phased in.

But a recent Kaiser Foundation analysis found turmoil in the unsubsidized market after two years of double-digit premium increases forced many consumers to drop out or seek other coverage.