President Trump Will Propose New Rule to Sell Health Insurance Across State Lines

FILE - In this Feb. 12, 2015 file photo Laura San Nicolas, right, and her daughter Geena, wait to meet with an enrollment counselor to sign up for health insurance at Sacramento Covered in Sacramento, Calif. California's Democratically controlled government is looking at a defensive future under President-elect Donald Trump …
AP/Rich Pedroncelli

President Donald Trump will propose a new Labor Department regulation that will allow health insurers to sell insurance across state lines.

The proposed change will promote competition amongst health insurers and subsequently provide competition across the country. The new rule will allow insurers and health associations to sell health insurance plans that do not comply with all of the Affordable Care Act’s health insurance regulations, which would allow Americans to have more affordable health insurance options.

President Trump signed the Tax Cuts and Jobs Act in December, which repealed Obamacare’s individual mandate to purchase health insurance, although, much of the Affordable Care Act remains intact.

Trump signed an executive order in October to increase healthcare options for Americans; the order will expand access to association health plans for small businesses, as well as increase accessibility to cheaper short-term health plans, and expand health reimbursement accounts for small businesses.

“They will be able to buy, they’ll be able to cross state lines and they will get great competitive health care and it will cost the United States nothing,” Trump explained in October when early reports suggested the Labor Department was working on the new rule promoting interstate health insurance competition.

Sen. Rand Paul (R-KY) cheered the action as the “biggest free-market reform of health care in a generation,” and then added that the order will pave the way towards purchasing health insurance across state lines.

Trump remarked in October, “When you can get Rand Paul on your side, it has to be positive!”

“Today is only the beginning,” Trump teased a few months ago. “In the coming months, we plan to take new measures to provide our people with even more relief and more freedom.”

President Trump tweeted on December 26, “Based on the fact that the very unfair and unpopular Individual Mandate has been terminated as part of our Tax Cut Bill, which essentially Repeals (over time) ObamaCare, the Democrats & Republicans will eventually come together and develop a great new HealthCare plan!”


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