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House GOP leaders are pitching reforms to the Supplemental Nutrition Assistance Program as they try to get a farm bill to the floor, while top House Democrats hit President Donald Trump on his plan to lower the high cost of prescription drugs. (May 16) AP

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Critics say the administration’s approach will draw healthy people away from the Obama health law’s insurance markets, raising the cost of coverage, which is subsidized by taxpayers. About 11 million people are covered by HealthCare.gov and state markets, but the administration’s priority is to try to lower premiums for another 7 million or so who buy their coverage directly and don’t get any help from the government.

“To the extent that these plans develop and serve as a parallel market, that could have a destabilizing effect,” said Karen Pollitz of the nonpartisan Kaiser Family Foundation, an expert on individual health insurance. Pollitz also served as a consumer protection regulator in the Obama administration.

“People who think they can get by without those (comprehensive) benefits will look for cheaper premiums,” she added.

State insurance regulators are concerned about association health plans because similar plans in the past had problems with financial solvency and even fraud. A big concern about Tuesday’s announcement is to what degree state regulators will retain oversight over the Trump administration’s new plans.

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