By Ahmed Aboulenein and Sneha S K
WASHINGTON, Feb 9 (Reuters) – The Trump administration proposed on Monday new Obamacare rules for 2027, allowing insurers to offer new kinds of long-term catastrophic policies, plans with low premiums but significantly higher out-of-pocket costs that would be used to cover major medical expenses.
The U.S. Centers for Medicare and Medicaid Services said the new regulations were intended to crack down on alleged fraud and misleading practices by health insurance agents and brokers to lower healthcare costs, without citing evidence.
The 2027 Payment Notice sets standards for health insurance issuers, brokers and agents who offer Affordable Care Act coverage, also known as Obamacare.
Catastrophic coverage was common before former Democratic President Barack Obama signed his signature ACA into law, effectively limiting its use.
Critics of catastrophic coverage say the plans trade in lower premiums for a high deductible most people will not be able to reach.
Republican President Donald Trump has called for reintroducing more catastrophic plans, which he says gives healthy Americans the freedom to choose the coverage that suits them.
The proposed rule encourages new, consumer-focused plan designs that expand choice and support affordability, the Centers for Medicare and Medicaid Services said.
The agency has called for stronger eligibility and income verification, along with enhanced enforcement policies, to ensure premium subsidies are reserved for eligible individuals.
The proposed rule is subject to a public comment period until March 11, the agency said.
(Reporting by Ahmed Aboulenein in Washington and Sneha S K in Bengaluru; Editing by Alan Barona, Sriraj Kalluvila and Aurora Ellis)
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