Trump administration proposes stricter Obamacare rules

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Reuters | Published: 02.15.17, 19:09

The Trump administration on Wednesday proposed changes to the Obamacare individual insurance market that insurers have said are needed for them to keep selling the plans as Republicans work on a replacement program. The changes to tighten enrollment and collect unpaid premium payments aim to cut down on signups from people after they are sick, which insurers say has created an unprofitable mix of healthy and sick customers.

Humana Inc on Tuesday said it was pulling out of this market altogether for 2018 and Anthem Inc. and Aetna Inc have said that without changes, they might not take part after 2017.

Trump and congressional Republicans campaigned last year on a promise to scrap the 2010 healthcare law that is a key legacy of Democrat Barack Obama's presidency. But they are struggling to agree on a replacement for the law, which enabled up to 20 million previously uninsured Americans to obtain health coverage. The proposed new rule, issued by part of the US Department of Health and Human Services, sets out changes that are meant to shore up the system developed under Obamacare. It is unclear which elements of this system could survive in the Republican replacement.