Monday, January 8, 2018

Your good news of the day: lower health care costs on the way

The new regulation, which was published in the Federal Register on January 5, will be available for public comment for 60 days. When it goes into effect, it will allow small employers to band together for the purpose of buying health insurance in the large group market. Specifically, it will “allow employers to form small business health plans based on geography or industry” and permit such plans “to serve employers in a state, city, county or a multi-state metro area.” It can be used to “serve all the businesses in a particular industry nationwide,” and also allows sole proprietors to join small business health plans. The Trump administration, via the U.S. Department of Labor, summarized its intended effect as follows:
These improvements stand to open health insurance coverage for millions of Americans and their families by making it more affordable for thousands of small businesses and sole proprietors. By joining together, employers may reduce administrative costs through economies of scale, strengthen their bargaining position to obtain more favorable deals, enhance their ability to self-insure, and offer a wider array of insurance options.

Where I work, the cost of the health plan is significantly more than the rent.  It didn't used to be that way, and this regulation will help lower healthcare costs.  Can't come soon enough.


  1. Why not allow ALL insurers to sell insurance across state lines? I realize that some of the high cost-low service people will go out of business but that's America.

    This is a good first step.

  2. Want to lower medical costs? Get rid of the prescription drug system. Adults should not need a permission slip to buy the meds they know they need. Let the free market work without nanny state gatekeepers.