The Trump administration recently released its final rule governing health plans aimed at small businesses.  “The rule stems from an executive order that Trump signed in October aimed at providing alternatives to the Affordable Care Act (ACA).”

ACA or Obamacare has had its many supporters and detractors over the past decade, but most are united on the fact that the legislation has dealt a blow to small businesses looking to stay competitive while offering health insurance plans to employees.  The new rule will grant small businesses and self employed individuals the option to purchase alternative health plans outside the Obamacare model.  While these plans will not be as expansive in terms of coverage, they will be cheaper and cut out unnecessary coverage options for younger and healthier individuals.

While a positive for healthier people, the rule could prompt “insurers to raise rates by 3.5% on the Obamacare individual market and 0.5% in the small business exchanges.”  Still being able to afford health insurance for employees has been something of a struggle for small businesses with multiple employees to care for.  Alot of times, employees were forced to work only part time so as not to violate ACA mandates and cause business to incur the added cost.

While not the perfect solution, I do believe this is another step in the right direction to figure out the best way to deal with health care for everyone.
Although the new rule does allow associations to base employer rates on gender, age, and industry average, associations cannot base rates on previous health issues.  For startups and small businesses this will offer an alternative way to deal with health care in the short term.