What does new health executive order mean for Washington state?

KING 5's Natalie Brand reports.

Washington’s insurance commissioner says no changes are expected overnight after President Trump signed a new executive order on health care, paving the way for significant changes to the individual market.

“This one we're going to be following very, very closely to make sure the worst doesn't happen by virtue of what’s been proposed right now,” said Insurance Commissioner Mike Kreidler.

Full statement from Insurance Commissioner 

The president’s executive order directs federal agencies to come up with new rules to expand access to less expensive, less comprehensive plans, exempt from some of the Affordable Care Act's strict regulations.

Related: What Trump's executive order does and doesn't do, via USA TODAY

Proposed changes include the ability for trade associations to band together, buy across state lines and offer short-term plans.

“It's going to allow more choices at a lower cost, in the health insurance market especially for individuals and small groups,” said Dr. Roger Stark, a critic of the Affordable Care Act. “Association health plans are going to allow these individuals to enjoy same benefits that large groups and large employers do.”

While supporters of the administration’s actions believe it will boost competition and lower cost, critics fear it will undermine Obamacare and create more uncertainty in an already unstable market.

“Since this President took office, he has done everything he can to sabotage the health care system in order to say it doesn’t work and we need to repeal Obamacare. This is part of that effort, and it will have an impact,” said Senator Patty Murray, ranking Democrat on the Senate Health Committee.

“What it means, if he can accomplish this, people will be able to buy cheap insurance plans that look good, but then when they get sick and go to the hospital, they won’t be covered,” said Murray. “It takes away the key protections you know you have when you buy insurance today, if it can be implemented the way he’s saying.”

It’s expected to take months or longer to write the new rules and undergo the review process. The Insurance Commissioner’s Office says the changes will not impact the upcoming enrollment process.

The new rates in Washington’s individual market will be approved later this month and will likely reflected the double-digit increases proposed over the summer.

“That’s the problem we’re trying to address,” said Senator Murray, who has been working with Republican Senator Lamar Alexander since September on a bi-partisan proposal to try to stabilize the market.

Senator Murray has blamed continued uncertainty over the administration’s funding of ACA subsidies known as cost-sharing reductions for this year’s rate hikes.

“Insurance companies are businesses, they make their rates based on that uncertainty. If it is uncertain they raise their rates.,” said Senator Murray.

“The other thing that Senator Alexander and I are trying to do is work within a waiver system that’s under the current law that allows states to be a little more flexible and apply for waivers, so they can manage their markets better. That will help us, not tomorrow, but it certainly will help us over the next year or two, and that’s one thing I’m very focused on.

Watch: Extended interview with Sen. Patty Murray on health care executive order

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