A study from Avalere Health released on Wednesday found that 3.2 million Americans will leave Obamacare for more affordable options such as Association Health Plans (AHPs), thanks to President Donald Trump’s executive orders on health care.
Dan Mendelson, president of Avalere Health, said, “Consumers are always looking for a new low-cost health insurance option but migration of healthy people to a new product will ultimately take a toll on what is presently being sold in the market.”
AHPs are health insurance pools sponsored by an industry, trade, or professional association that provides health coverage to their members.
President Trump signed an executive order in October that expanded AHPs, as well as short-term limited-duration insurance plans to offer Americans more affordable options compared to Obamacare.
“This will cost the United States government virtually nothing and will provide people great, great health care,” Trump said in October.
Avalere found that by 2022, one million Americans would move out of the Obamacare individual market to join AHPs, and 2.2 million people would drop out of the small-group market to join an AHP as well.
The study also revealed that Americans would experience drastically lower health premiums through AHPs compared to Obamacare.
AHPs would be roughly $2,900 lower per year compared to the small-group market and $9,700 lower per year compared to the individual market.
Avalere cites that the lower average premiums in AHPs mostly result from a healthier insurance pool due to “risk selection,” and less generous offerings.
Chris Sloan, senior manager at Avalere, explained, “The proposed rule would lead to millions of individuals and small businesses shifting into a new form of coverage, likely reducing their premiums, but leading to higher premiums in the markets they leave behind.”
President Trump argued last week that, “Piece by piece by piece, Obamacare is being wiped out!”
Sen. Rand Paul (R-KY) praised the action last October as “the biggest free-market reform of health care in a generation.”