Published April 11th, 2017 by Stephanie
Recently, there has been a strong push by Republicans to replace Obamacare. Proposed plans have begun to emerge. While bills are likely to develop over the next few months, it is possible to begin to identify who would be most impacted under the new legislation.
The primary Republican replacement proposal calls for providing refundable tax credits based on a person’s age and income. Obamacare protections for those with pre-existing conditions remain, but it also allows insurers to levy a 30% surcharge for a year on the premiums of those who let their coverage lapse. Taxes that had been imposed on the wealthy, insurers, and prescription drug manufacturers under Obamacare are lifted. Additionally, it loosens insurance reforms so that a wider array of policies can be offered. The proposed bill would also eliminate the enhanced federal match for Medicaid expansion starting in 2020 while revamping funding for the entire Medicaid program.
One of the primary concerns of the bill appears to be true – millions of Americans would be left uninsured. Up to 10 million people could lose their coverage. This loss of coverage would be due to Medicaid reductions and smaller tax credits, with a goal of reducing what the federal government spends on healthcare. However, if the Affordable Care Act is not altered, the case could be made that millions of Americans are going to end up losing their coverage anyway.
It remains to be seen how the bill would impact the individual market. If millions of people drop out, insurers could flee the market or drastically increase their rates. On the other hand, the market could be stabilized because reforms would give insurers more flexibility, and encourage younger Americans to enroll in coverage.
Lower-income Americans would be hurt under the Republicans’ plan. Under Obamacare, Medicaid was expanded to cover adults who earn up to $16,400 per year. Those with incomes just under 30,000 receive generous subsidies to assist with their premiums, deductibles and out-of-pocket costs on the individual market. As previously mentioned, enhanced federal Medicaid funding for new enrollees would end in 2020. Participation would be expected to fall off quickly.
Older Americans would also have to pay more. Adults age 60 to 64 could see their annual premiums soar 22%. Those in their 50s could see their premiums rise by 13%.
Younger Americans would see a reduction in their premiums, saving up to $4,000 a year.
The legislation would give a tax break to the wealthy averaging $33,000. Americans would also be able to contribute more to Health Savings Accounts.
Insurance companies could also be big winners under The American Health Care Act. There would be no limit on the amount of their executive’s pay that could be written off as a business expense, meaning that millions could be written off to and provide a big tax break for managed care corporations.
No matter the status under the current Obamacare legislation or the proposed American Health Care Act, you can win by using the USA Rx discount card. The discount card is a free way to save money on your prescriptions while going to any a number of pharmacies across the United States. Although it is not insurance, you can save up to 75% off the price of your prescription.