Trump administration's HRA rule would lead to lower health insurance cost, more choices for small businesses: District Media president
President Trump unveiled a new rule on Friday that would allow employers to use tax-exempted funds, known as health reimbursement arrangements, for workers to purchase coverage in the individual market.
This comes as the administration has faced pushback in its efforts to repeal Obamacare.
District Media President Beverly Hallberg said that this new initiative would be a huge benefit to a large section of the country that has been hampered by Obamacare.
“In some areas of the country, there's only one option in individual markets, some cities [have] no options at all, and so as somebody who buys my own health insurance I can tell you that since the ACA has passed, it has quadrupled in price, 400% since the Affordable Care Act has passed,” she said on “Making Money” Friday.
Hallberg said the rule proposed by President Trump will give small businesses the opportunity for employees to shop around for health insurance and, as a result, push insurance companies to start competing again.
“When it comes to insurance companies, they’re going to have to start competing again and when you compete you see prices go down, of course, so I think as a whole this leads to more choices and, of course, lower costs.”
While Hallberg said everyone acknowledges the problems with the current healthcare system, she notes that small businesses are hit the hardest. She adds that Democrats are to blame for the high insurance costs and lack of choices, which would only get worse if Medicare-for-all is passed.
“What Democrats are doing is doubling down on what's bad about the [Affordable Care Act ] saying we need a public option, we need Medicare-for-all,” she said. “What that does is eliminate all choices all together and I think it's important to note if Medicare for all or something similar came into effect, that employer covered insurance that you like which the majority of the country is in, that goes away, you don't have that anymore.”
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In addition to expanding healthcare options, the president discussed new initiatives to bring down the cost of prescription drugs and combat childhood cancer.