Democratic AGs Sue Trump to Block Affordable Health Insurance

Claim Trump rule will give cheaper health insurance options to young Americans, allowing them to opt out of Obamacare…

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(Joshua Paladino, Liberty Headlines) The Trump administration passed a rule in June allowing individuals to band together in association health plans that will offer affordable health insurance, but twelve Democratic attorneys general sued on Thursday to block the administrative change, Modern Healthcare reported.

“The Trump administration is once again waging an assault against the fundamental rights of Americans to have access to safe, high quality, affordable healthcare,” said New York’s Democratic Gov. Andrew Cuomo, whose state joined the suit.

The lawsuit alleges the rule change filed by the U.S. Department of Labor breaches the Administrative Procedure Act, the Affordable Care Act, and the Employee Retirement Income Security Act.

The attorneys general say association health plans will give cheaper health insurance options to young Americans, allowing them to opt out of the Affordable Care Act marketplace.

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They fear this will drive up costs for older Americans by creating a pool of individuals with higher health risks.

Association health plans do not have the same coverage requirements, so healthy people can choose to buy a plan without the ACA’s comprehensive coverage mandate.

The attorneys general argue the rule will create more problems for states because they will have “to devote resources to policing a flood of inadequate or fraudulent plans offered by associations.”

They also say the Trump administration will overturn improvements to the health care system made by the Obama administration, such as lessening the number of uninsured people, requiring comprehensive coverage, and steadying the individual and group insurance markets, Modern Healthcare reported.

The lawsuit asserts the Department of Labor expanded the definition of employer beyond its legal limits to include groups created to sell insurance.

The attorneys general further contend the rule violates the ACA by allowing self-employed individuals to join association health plans.

The Trump administration and other analysts have projected that as many as five millions Americans will leave ACA-regulated markets to join association health plans.