TrumpCare Could Mean Lifetime Limits and Less Benefits For Workers

There is a loophole in TrumpCare that could result in lifetime limits and the loss of other essential benefits guaranteed by ObamaCare.

UPDATE 2019: This plan never passed, and thus some specifics here are of historical interest only.

The state-based waivers allow states to waive essential health benefits. This results in a loophole where large employers who operate in a state that uses a waiver could apply the lax benefits to all the plans they offer (even plans provided to employees in other states).

This means very large employers will be able to pick and choose which state’s policy they follow (it doesn’t mean they will, it means they could).

According to NyMag:

The Senate health-care bill will reportedly retain the House’s language allowing states to opt out of Obamacare’s essential benefits requirements. This would free insurers to, among other things, sell plans that impose annual and lifetime limits on coverage benefits in some red states.

But it would also free America’s large employers to impose such limits on all of their workers, no matter what state they reside in. This is because, under existing regulations, employers that have operations in multiple states can choose to apply any one of those state’s insurance standards to all their businesses. In other words, if Utah allows insurers to cap lifetime benefits at $1 million — and a company has branches in Utah and California — then that company can ignore California’s ban on such limits and impose them on all their employees.

Obviously, that is not ideal. It is probably also something most people wouldn’t think about. The focus has been on people getting less assistance and like cost sharing assistance, premium assistance, and Medicaid. But the reality is workers have a lot on the line here too.

TIP: This applies to the bill as it passed the House, changes could still be made in the Senate.

Author: Thomas DeMichele

Thomas DeMichele is the head writer and founder of,, and other websites. He has been in the health insurance and healthcare information field since 2012. is a...

Leave a comment

We'll never share your email with anyone else.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Eric J. Silverman

Another egregious attempt to sidestep worker’s rights.

ObamaCareFacts is a free informational site. It's privately owned, and is not owned, operated, or endorsed by the US federal government or state governments. Our contributors have over a decade of experience writing about health insurance. However, we do not offer professional official legal, tax, or medical advice. See: Legal Information and Cookie Policy. For more on our company, learn About or Contact us.