New Obamacare Laws Cause Dallas Health Insurance Brokers to Offer Short-term Alternative Plans

New Obamacare Laws Cause Dallas Health Insurance Brokers to Offer Short-term Alternative Plans

The overall effects of the Executive Order coming out of the White House could Dallas health insurance rates

October 16, 2017 ( health insurance broker’s job has just gotten more complicated. The White House announced Thursday to immediately stop making Cost Sharing Reduction (CSR) payments to insurers who sell Obamacare health plans. This move will increase premiums nationwide upwards of 25% or more and is expected to lead many insurers to exit the marketplace. CSRs are designed to reduce the out-of-pocket cost to low income insured persons on Obamacare. Out-of-pocket cost include deductibles, co-insurance and prescription drugs that insurers must pay before or with a medical purchase.

A greater number of people receiving health insurance in Dallas and other large cities, about 85 percent of all Obamacare exchange customers, qualify for subsidies that reduce their monthly plan premiums. Those subsidies, in the form of federal tax credits, are not at risk from the action taken to immediately eliminate CSRs. It is estimated by the Congressional Budget Office that as-a-result of eliminating CSRs, the federal deficit would increase by $195 billion by 2020. This accomplishes the opposite result of its intent.

For months in 2017, insurers, health-care providers groups, patient groups and state insurance officials have expressed concerns that cost sharing reimbursements could be cut off. Already, health insurance agents in Dallas have gotten emails from clients asking, “Why has my premium suddenly increased, starting at the end of the month, from $360/month to over $900/month”, says John Thornton, an insurance broker with Insurance4Dallas. This will cause many people who depend on subsidies to make additional monthly payments to insurance companies so that coverage is not loss.

This decision is a result of the previous Congress successfully challenging with a lawsuit the last administration’s decision to make reimbursement payment to insurers without getting the express budgetary authorization from Congress. So far, Attorney Generals in 18 states were given permission to intervene in the pending appeal of the federal court decision that had ruled the payments were illegal given their lack of congressional authorization.

At the same time, earlier the same day, another congressional order announced consumers could purchase short-term policies, which do not cover pre-existing conditions. Covering pre-existing conditions is a requirement of all Obamacare plans. Short-term policies do not have guarantee issuance when the policy term expires. This puts people believing they are saving money by purchasing a short-term policy in a compromising position if they have a serious illness when the policy expires. Renewal to this policy would impossible and the individual would go without healthcare until the next open enrollment at the end of the year.

The overall effects of both policies issued by executive order could have far reaching effects to low income Americans. These insured Americans will receive increased premium heights and no help in paying out-of-pocket hospital bills. Congress will have to step in to make changes to the law before Open enrollment 2018 which starts on November 1st, 2017.

Insurance4Dallas, (I4D), helps insure all of Texas, Oklahoma, Arkansas, Arizona, Louisiana, New Mexico, Alabama, Virginia and Florida. Insurance4Dallas provides consumers with detailed information on health insurance with the ability to purchase health insurance online. Insurance4Dallas provides a full spectrum of health, dental, vision, life and ancillary insurance products, providing a diverse selection of price and benefit options complemented by personal customer service. Available via phone, email or fax, Insurance4Dallas answers consumer questions throughout the purchasing process and during the utilization of its health insurance policies.

The Thornton Insurance Agency, which uses (I4D) as its URL, is an online source of health insurance for individuals, families and small businesses. Insurance4Dallas removes the intricacy out of selecting medical insurance by providing data in an objective, easy to read format, enabling the research, analysis, comparison and purchase of health and life insurance products that best meet consumers’ needs. has developed partnerships with many of the major insurance carriers, offering competitive insurance products online. I4D has worked hard with all of our insurance carriers to provide a seamless and secure connection electronically that gives us real time and direct connectivity to their application process. This decreases the time considerably for processing your insurance application. provides consumers with detailed information and the ability to apply 100% online. I4D provides a full spectrum of health, life and dental insurance plans with a selection of price and benefit options, complemented by personable customer service. Available via phone, email or fax, Insurance4Dallas answers consumer questions throughout the process of purchasing and using health insurance.

The Thornton Insurance Agency was founded by Rick Thornton, who has been licensed and selling Insurance since 1986. He lends his expertise in the continued focus of customer satisfaction by becoming Texas number one online source for Life and Health Insurance. 

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Source: PR