Big Changes Coming to Health Insurance
Written by: President and co-founder of Freedom Healthworks, Adam Habig
Freelancers and individual Americans will soon have new, less expensive options when purchasing health insurance, including some available only to the largest corporations until now.
In response to President Trump’s order last fall, the Department of Labor issued final rules making it easier for unrelated individuals to join together to achieve the size and scale necessary to form “association health plans.”
Like the employer-sponsored plans overwhelmingly utilized by large companies, association plans are largely exempt from the “one-size-fits-all” ACA mandates, so they can customize the coverage inside the plan to match the specific needs of their constituents. This means cutting unwanted costs, while also achieving better pricing in bulk from insurance carriers. With their larger size, association plans could self-insure like nearly all large businesses to further lower premiums. They feature flexibility to integrate attractive options like direct primary care (DPC), which offers a concierge-style personal physician to everyone for a low monthly subscription. With DPC, people have access to their physician whenever they need it without insurance networks, co-pays and deductibles getting in the way.
Critics dislike that association plans offer Americans an option where their health insurance costs decrease to match their own specific risks rather than the “community” thus enabling many to escape the expensive public exchanges.
However, the big winners are millennials, who could see their insurance premiums fall below $100/month once they are no longer propping up the public exchanges. Coupled with a direct primary care plan, individuals in 2019 could enjoy TOTAL health spending of less than $200 per month for high-quality, always-accessible healthcare, backed by insurance to safeguard against catastrophic expenses.
In addition to freelancers and individual Americans having less expensive options when purchasing health insurance, small businesses will too. Click here to learn more about the change.
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