As the most reliable and balanced news aggregation service on the internet, DML News offers the following information published by WASHINGTONEXAMINER.COM:
A group of 11 states and the District of Columbia are suing the federal government to roll back a regulation to expand access to association health plans, which are cheaper than Obamacare plans but offer fewer benefits.
The lawsuit, filed Thursday, seeks to block the regulation finalized earlier this year by the Trump administration, which also issued a proposed regulation that expands the duration of short-term health plans from 90 days to 12 months. Critics have charged both regulations would destabilize Obamacare’s insurance marketplaces by causing younger and healthier people to flee and buy the cheaper plans.
The article goes on to state the following:
The regulation expands who can gain access to an association health plan, which allows small businesses to band together to get insurance. Associations can offer plans that don’t comply with Obamacare’s requirements that include protections for people with pre-existing conditions and a requirement to cover certain essential health benefits.
The states charge that the regulation aims to move a “large number of small employers and individuals into the large group market because the [Affordable Care Act’s] core protections do not apply to that market,” the lawsuit says.
“Worse yet, health plans created under the final rule would lack basic market incentives and statutory protections under federal law that apply to plans from true large employers,” it continues.
States say that the final rule is unlawful because it conflicts with the “clear statutory structure that Congress adopted in the ACA to apply fundamental protections to the individual and small group markets.”
New York is leading the lawsuit. Massachusetts, California, Delaware, Kentucky, Maryland, New Jersey, Oregon, Pennsylvania, Virginia, and Washington are the other states that have signed on to the lawsuit against the U.S. Department of Labor.
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