Obamacare | Obamacare repeal | Who gets hurt and who gets helped !
- 7 years ago
The legislation, titled the American Health Care Act, now moves to the Senate, where it will likely change a lot when or if it lands on President Trump's desk. But it's already possible to identify who will get helped and who will get hurt by the bill.
The legislation calls for providing refundable tax credits based on a person's age and income. It allows states to waive some protections for those with pre-existing conditions, while letting insurers charge higher rates to older consumers and levy a 30% surcharge on the premiums of those who let their coverage lapse.
The bill also eliminates the enhanced federal match for Medicaid expansion starting in 2020 and curtails federal support for the entire Medicaid program, which covers about one in five Americans. And it lifts the taxes that Obamacare had imposed on the wealthy, insurers and companies.
Younger Americans could get cheaper plans
Obamacare was designed so that younger policyholders would help subsidize older ones. That would change under the Republican bill because it would allow insurers to charge older folks more.
This means that younger Americans would likely see their annual premiums go down. Enrollees ages 20 to 29 would save about $700 to $4,000 a year, on average, according to a study by the Milliman actuarial firm on behalf of the AARP Public Policy Institute.
Those under age 30 would also get a refundable tax credit of up to $2,000 to offset the cost of their premiums, as long as their income doesn't exceed $215,000 for an individual.
The healthy could buy less expensive policies in some states
Obamacare requires insurers to provide an array of health care benefits, including maternity, mental health, prescription drugs and substance abuse. This comprehensive coverage, however, jacks up premiums and provides services that some consumers find unnecessary -- think, a couple in their late 50s who aren't having any more kids likely don't need maternity coverage.
The bill would allow states to waive this federal mandate, which would allow insurers to offer skinnier plans that offer fewer benefits with lower premiums.
Middle class and higher-income Americans could get tax breaks and perks
The Republicans would enable people higher on the income scale to claim the tax credit to help pay their premiums. Under Obamacare, an enrollee who makes more than $47,500 is no longer eligible for a premium subsidy. The GOP plan would let a policyholder making up to $75,000 claim the full tax credit. The benefit would phase out slowly until the enrollee hits $215,000 in income.
The legislation calls for providing refundable tax credits based on a person's age and income. It allows states to waive some protections for those with pre-existing conditions, while letting insurers charge higher rates to older consumers and levy a 30% surcharge on the premiums of those who let their coverage lapse.
The bill also eliminates the enhanced federal match for Medicaid expansion starting in 2020 and curtails federal support for the entire Medicaid program, which covers about one in five Americans. And it lifts the taxes that Obamacare had imposed on the wealthy, insurers and companies.
Younger Americans could get cheaper plans
Obamacare was designed so that younger policyholders would help subsidize older ones. That would change under the Republican bill because it would allow insurers to charge older folks more.
This means that younger Americans would likely see their annual premiums go down. Enrollees ages 20 to 29 would save about $700 to $4,000 a year, on average, according to a study by the Milliman actuarial firm on behalf of the AARP Public Policy Institute.
Those under age 30 would also get a refundable tax credit of up to $2,000 to offset the cost of their premiums, as long as their income doesn't exceed $215,000 for an individual.
The healthy could buy less expensive policies in some states
Obamacare requires insurers to provide an array of health care benefits, including maternity, mental health, prescription drugs and substance abuse. This comprehensive coverage, however, jacks up premiums and provides services that some consumers find unnecessary -- think, a couple in their late 50s who aren't having any more kids likely don't need maternity coverage.
The bill would allow states to waive this federal mandate, which would allow insurers to offer skinnier plans that offer fewer benefits with lower premiums.
Middle class and higher-income Americans could get tax breaks and perks
The Republicans would enable people higher on the income scale to claim the tax credit to help pay their premiums. Under Obamacare, an enrollee who makes more than $47,500 is no longer eligible for a premium subsidy. The GOP plan would let a policyholder making up to $75,000 claim the full tax credit. The benefit would phase out slowly until the enrollee hits $215,000 in income.