How Trumpcare will change the U.S. Health Insurance System
Most people don’t agree on much when it comes to politics, but most people will agree that the American healthcare system is undergoing a lot of changes. The Affordable Care Act, also known as Obamacare, was created to try and bridge the gap between health insurance people needed and health insurance policies that people could actually afford. The ACA was met with a number of challenges and critiqued by many, but it did result in millions of previously uninsured Americans receiving a level of health insurance they hadn’t had before.
When President Trump was elected, Republicans in the House and in the Senate vowed to demolish the existing health insurance structure set up by Obamacare and replace it with something else. Unfortunately, the details nor the expenses were made clear, and the bill failed its first time around. The House of Representatives then amended a health care bill that they dubbed the American Health Care Act of 2017. This bill passed in the House of Representatives, but is likely by no means the last in a line of many changes to be made to the healthcare and health insurance structure in the United States. The bill, which will be amended, has to be passed in the Senate in order for it to result in any changes to the existing health insurance system.
Trumpcare and Insurance
The American Health Care Act is also known as Trumpcare, much as the Affordable Care Act is also known as Obamacare for the president that enacted it. Trump’s health care plan, as we know it, would look much different than Obamacare currently does. Here are a few ways that Trumpcare would change the US health insurance system.
Trump’s health insurance plan would result in 23 million fewer Americans who would have health insurance. Obamacare ensured that millions of Americans were able to receive affordable health care, and many of these people would be unable to continue paying for their health insurance under the new structure.
Health insurance experts estimate that nearly 51 million Americans would be left without insurance. This number is influenced by the lack of an individual mandate, something Trump and Republicans wanted to get rid of under the new health care system, and the higher cost of health care that will result from the changes made to the existing health insurance infrastructure.
Who is affected?
The changes of Trumpcare will affect middle-aged Americans, who may find that their premiums are rising faster than they can afford to pay them. Under Trumpcare, elderly individuals seeking health insurance may pay much more than their younger counterparts for the same level of insurance care, simply because of their age. Additionally, middle and lower-class Americans will lose their insurance because of rising health insurance costs.
Elderly residents of the United States will see their Medicaid benefits decreased by nearly $834 billion dollars. This will eliminate much of the expansion the Medicaid program saw under Obamacare, where nearly 14 million additional people received health insurance as a result of the federal program. Medicaid also provides insurance for low income families and people with disabilities, who would be left high and dry under Trumpcare.
Additionally, individuals with pre-existing conditions would no longer be protected under Trumpcare. Insurance companies would be allowed to increase their prices based on whether a person is already sick, disabled, or otherwise injured. Most Americans have a member of their family who has a pre-existing condition, which can include asthma, diabetes, and even pregnancy.
Changes to the tax structure
Trumpcare proposes $664 billion in tax cuts that target wealthier individuals in the United States. There would be no capital gains or Medicare taxes for single filers or couples who earn more than $200,000 or $250,000 per year, respectively.
Tax breaks would also be given to insurance companies, the manufacturers of medical devices, prescription drug manufacturers, and indoor tanning salons. Basically, the wealthiest 1% of the United States would be given tax breaks, while others who need those breaks would see rising health care costs and a minimum wage that can’t keep up.
Increased premiums
The average net health insurance premiums would be 13% higher under Trumpcare, experts estimate. Premiums will be higher for elderly individuals, in addition to people in the low and middle classes. Although the richest individuals in the US would receive tax breaks, those who are already struggling to make ends meet may end up dropping their sub-par health insurance in order to pay their rent, for food, and for immediate needs that affect themselves and their families.
Under Obamacare, insurance companies were required to offer health insurance policies that met certain requirements for essential services. Trump would do away with those requirements, in addition to the individual mandate. This means that people have no incentive to buy health care, especially if the insurance policies don’t provide adequate coverage.
There would also be fewer protections for people with pre-existing conditions who received health insurance under Obamacare. People with pre-existing conditions who had a gap in coverage could end up paying thousands of dollars more for coverage.
Experts agree that Trumpcare will destabilize the health care markets in some parts of the country. Obamacare mandated that people had to have coverage, or pay a penalty for not doing so. This kept people from waiting until they were sick to buy health insurance, which increases medical costs for everyone. The healthier people buy health insurance, the more money there is to spend on the medical needs of those who are sick or injured.
Trumpcare would eliminate the penalty fee, which means people wouldn’t be penalized for not having health insurance and that they could wait until they were sick or injured in order to buy an insurance policy. This raises health insurance costs and the overall cost of health care, resulting in a situation where many people are unable to pay for the care they need and tax an already overcrowded and underfunded system.
If you would like more information about the health insurance structure changes in the United States or to learn more about your own health insurance options, we here at BuyHealthInsurance.com can help you find the right coverage for you. Our insurance experts can walk you through the insurance options that may be the best for you and your family. You can also call 1-800-793-3803 to speak with one of our professional health care advisors, who can tell you more about health insurance alternatives like medical cost sharing groups in the United States.
