The U.S. government launches a short-term low-cost medical insurance plan with a premium that is only 1/3 of Obamacare

The U.S. government launches a short-term low-cost health insurance plan with a premium that is only 1/3 of Obamacare. Information video: The implementation of Trump’s new tax law will definitely end Obamacare. Source:…

Information video: The implementation of Trump’s new tax law will definitely end Obamacare. Source: Shanghai Oriental HD

China News Service, February 22. According to the US "World Journal" report, the US Department of Health and Welfare has recently launched a new short-term insurance plan and is preparing to promote it among consumers as a cheap alternative to the Obamacare comprehensive insurance plan. The monthly premium is about one-third of the comprehensive insurance plan.

The new plan allows consumers to purchase short-term insurance for up to 12 months, but the insurance benefits are fewer and some major insurances are not covered, so the premiums are reduced accordingly.

The government stated that the short-term insurance plan will be open for public comment for 60 days in order to improve it as soon as possible and strive to launch it before the end of the year.

However, according to Obamacare regulations, short-term insurance plans are still not considered formal insurance in 2018, which means that participants are still legally considered to be uninsured and may face penalties when filing taxes. But in 2019, the repeal of Obamacare’s mandatory coverage will take effect.

reported that the plan also has a disclaimer, which states in advance that it does not meet the insurance conditions of Obamacare, does not have the ten major categories of benefits, and has limited insurance coverage. If the insurance company finds that the plan is insured while sick, participants will be charged higher fees.

However, the Ministry of Health stated that short-term insurance plans, as an option, will have a market among the middle class who need individual health insurance plans but do not meet the Obamacare subsidy policy. For some middle class, the monthly premium is more than 1,000 US dollars, and they have to pay thousands of dollars in deductibles. The rate of uninsured among them is increasing.

The U.S. Secretary of Health pointed out that if consumers do not receive health insurance subsidies, it is indeed unaffordable to buy insurance in the health insurance market. The Ministry of Health estimates that the monthly premium for a short-term insurance plan is about one-third that of a comprehensive insurance plan.

Democrats criticized short-term insurance plans as "junk insurance," and mainstream insurance lobbying groups worried that the plans would create divisions between healthy and sick groups, making it more expensive for sick policyholders.

The Trump administration stated that the short-term insurance plan is not to harm Obamacare, but to help people who cannot receive health insurance subsidies. It is expected that after the implementation of the new plan, only 100,000 to 200,000 people will withdraw from the Obamacare plan, and it will be attractive to many people without insurance. About 28 million people in the United States are without insurance.

The director of the Centers for Medicare and Medicaid Services said that many healthy people who do not participate in health insurance plans now have the opportunity to participate in health insurance.

Major insurance company "United Healthcare" has launched short-term insurance plans, but other insurance companies believe that short-term insurance plans are just a supplement, mainly for consumers to consider when changing jobs, moving to other states or retirees who have not yet received Medicare.

Rights protection organizations believe that if consumers choose a short-term insurance plan, they must read the plan instructions carefully in order to ensure that they will be paid.