The Washington Post is reporting this morning that Donald Trump has signed an executive order which will open the door to junk health insurance, eliminating a key provision of the Affordable Care Act.
President Trump intends to sign an executive order this morning expanding association health plans. But 25 years ago, federal watchdogs concluded that such plans ripped off hundreds of thousands of Americans by refusing to pay their medical claims while violating state insurance laws and even criminal statutes.
Trump’s executive order brings back Multi Employer Welfare Associations, MEWAs. In the 1990s they were widely viewed by insurance company watchdogs and many insurance companies themselves as scams and fraudulent healthcare insurance. A major portion of the Affordable Care Act regulated these MEWAs. Trump’s order eliminates those protections.
Association plans allow the grouping together of small businesses and offering lower-cost insurance similar to large companies. The problem is that they are as impossible to regulate and control as were the banks that bundled shoddy mortgages and sold them as valuable commodities. The net result is the same: worthless mortgages and worthless insurance.
This isn’t about better healthcare. This is about Trump destroying every signature achievement of the Obama administration. This is the school bully destroying his target’s science project and then declaring him a loser, unable to create anything for the science fair. This is the Republicans using their senile leader as cover while they profit from sickness and enrich the pockets of their billionaire buddies.
Trumpers and other gullible folks will cheer the appearance of cheap health insurance until they discover, too late, that they have purchased the healthcare equivalent of a junk bond and that the heart surgery they just had is going to bankrupt them for the rest of their lives.