The Trump administration issued a rule on Tuesday that would make it easier for small businesses to unite and create health insurance plans that cost less but offer fewer benefits.
The new entities, called association health plans, would allow small-business owners, their employees, and other self-employed people to band together to buy or supply insurance in the large-group market, The New York Times reports. The plans would make companies exempt from some of the requirements of the Affordable Care Act, like providing mental health care and maternity and newborn care.
President Trump said the association health plans could “provide more affordable health insurance options to many of Americans, including hourly wage earners, farmers and the employees of small businesses and entrepreneurs that fuel economic growth,” according to the Times. About 11 million Americans could find coverage with the association health plans, according to the Labor Department, which would regulate the new entities as it does with other employee benefit plans. Read More