Home Health Care News New Trump Rule Gives Employers Health Plan Flexibility

New Trump Rule Gives Employers Health Plan Flexibility

The Trump administration finalized a rule allowing employers to make changes in their health plans without losing their grandfather status exempting them from certain Obamacare provisions.

The rule, posted on December 15, allows employers to increase employees’ health insurance deductibles, as many employers are under severe financial stress from the government lockdowns imposed in response to the COVID-19 pandemic.

Under the Affordable Care Act (ACA), employers were forced to comply with the law’s coverage requirements, but the law allowed certain health plans that existed before enactment to maintain their then-current coverage, except for a provision that plans must cover those with preexisting conditions. The “grandfather” provision was originally supposed to phase out but in 2017, President Donald Trump signed an executive order delaying the date when all plans would have to comply with the ACA.

Grandfathered Plans

The new rule shores up that order by allowing more companies to increase deductibles without having to be fully ACA compliant.  Higher deductible plans allow employees to use a health savings account (HSAs).

“The final rule promotes choice and competition in health coverage,” said U.S. Secretary of Labor Eugene Scalia in a news release. “The flexibility the final rule provides allows employers to continue to provide American workers with the health coverage that they prefer during this critical time.”

“Today’s final rule equips many employers with an important tool to respond to rising health care costs,” said Acting Assistant Secretary for the Department of Labor Jeanne Klinefelter Wilson. “Employers are now better positioned to continue to offer affordable health care options that best meet their employees’ needs.”

—Staff reports

Internet info:

“Grandfathered Group Health Plans and Grandfathers Group Health Insurance Coverage,” Internal Revenue Service, Employees Benefits Security Administration, Health and Human Services, Department of Labor, Centers for Medicare & Medicaid Services, December 15, 2020:  https://www.federalregister.gov/documents/2020/12/15/2020-27498/grandfathered-group-health-plans-and-grandfathered-group-health-insurance-coverage

AnneMarie Schieber
AnneMarie Schieber is a research fellow at The Heartland Institute and managing editor of Health Care News, Heartland's monthly newspaper for health care reform.


Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

Parents Get Options to Escape School Lockdowns

President Trump approved the use of grants to help cover the costs of in-person education, including enrollment in private schools, allowing parents to get their children back in classrooms.

What the School Board Members Who Shape Your Child’s Curriculum Really Believe

Over 14,000 school boards, with about 100,000 members, set the course for instruction in classrooms across the country. To understand the views of parents...

Antifa Rioters Storm the Pacific Northwest After Biden Inauguration

In Portland, President Biden’s inauguration sparked another day of unrest, where approximately 200 people marched through the city and smashed windows at Democratic Party...

California Residents Pay $6,029 per Capita in Key State Taxes, Study Finds

California residents pay 9.49 percent of their income per capita toward property, income and sales taxes – or $6,029 per person – according to a...
- Advertisement -

Recent Comments

Randy M Verret on The Gaslight Election
S. T. Karnick on The Gaslight Election
Randy M Verret on The Gaslight Election
S. T. Karnick on The Gaslight Election
Randy M Verret on The Gaslight Election
S. T. Karnick on The Gaslight Election
Randy Verret on The Gaslight Election
Randy Verret on The Gaslight Election