On Friday, October 13, President Donald Trump signed off on a new executive order allowing businesses and nonprofit organizations to band together and negotiate for cheaper health insurance plans.
The Affordable Care Act, commonly known as “Obamacare,” serves as the current health care law and prohibits businesses and individuals from using insurance providers in different states.
Now that buyers have fewer insurance options within their state lines, a spike in monopolization of insurance companies has occurred, resulting in higher health care costs.
The nation’s largest private online health insurance exchange, eHealth.com, states that average family premiums have increased 140 percent and the average individual by 99 percent since 2013.
The new act will permit these businesses and organizations to purchase insurance coverage in any state. By doing this, competition between insurance companies will increase in order to meet the needs of the consumer and presumably lower insurance premiums.
While campaigning for the 2016 presidential election, Trump listed one of his top priorities as the repeal and replacement of “Obamacare.”
“We’ll look very strongly at healthcare, and jobs, big league jobs,” Trump said to reporters in the Senate shortly after winning the 2016 election.
Despite his numerous attempts to rally the full support of the congressional Republicans in order to repeal and replace “Obamacare”, the senate vote fell shy by just one vote in September. However, Trump took action by signing the executive order, making progress in his presidential agenda.
While most Republicans see this as a step forward, the majority of Democrats believe it could bring lower quality in coverage. “It would allow cheap, low-quality plans onto the market,” said Sen. Tim Kaine in a series of tweets following the decision.
Although this new executive order has been enacted, it is only a temporary fix according to Trump, as he looks forward to the full repeal and replacement of “Obamacare.”