New insurance guidelines would undermine rules of the Affordable Care Act

Seema Verma, administrator of the Centers for Medicare and Medicaid Services, issued new guidance to states that would allow weakening of provisions of the Affordable Care Act. Credit: Kate Patterson, The Washington Post)

The Trump administration is urging states to tear down pillars of the Affordable Care Act, demolishing a basic rule that federal insurance subsidies can be used only by people buying health plans in marketplaces created under the law.

According to advice issued Thursday by federal health officials, states should be free to re­define the use of those subsidies, which began in 2014. They represent the first help the government ever has offered middle-class consumers to afford monthly premiums for private insurance.

States could allow the subsidies to be used for health plans the administration has been promoting outside the ACA marketplaces that are less expensive because they provide skimpier benefits and fewer consumer protections. In an even more dramatic change, states could let residents with employer-based coverage set up accounts in which they mingle the federal subsidies with health-care funds from their job or personal tax-deferred savings funds to use for premiums or other medical expenses.

View the complete November 29 article by Amy Goldstein on The Washington Post website here.