Last week, Donald Trump signed a new executive order facilitating more flexibility for consumers of health insurance.
The order allows for more flexibility in purchasing insurance across state lines, and greater freedom both small businesses and groups of consumers in creating “association health plans” (AHPs). In theory, this will broaden access to the benefits currently enjoyed only by those with employment-based insurance, and other types of group insurance.
The order paves the way for healthcare reforms long favored by Kentucky Senator Rand Paul who believes the reforms will help bring down healthcare costs.
In an op-ed for Breitbart, Paul writes:
Millions of Americans will be eligible to band together to demand less-expensive insurance. The 28 million individuals left behind by Obamacare will now be eligible for inexpensive insurance.
How will it work? Well, nationwide associations like the National Restaurant Association will be allowed to form groups across state lines and, with the leverage of size, demand Big Insurance bring down their outrageous premiums.
This post was published at Ludwig von Mises Institute on October 20, 2017.