Will Obamacare Survive Trump’s Presidency?

Will Obamacare Survive Trump’s Presidency?

Will obamacare survive trumps presidency

As Donald Trump prepares to enter his presidential runoff election campaign, his officials have devised ways to sabotage the Affordable Care Act by cutting off taxpayer funding flows and revising regulatory interpretations.

After one legislative debacle after another, lawmakers have come around to the notion of “allowing Obamacare to implode”. Unfortunately, doctors warn this could prove detrimental for poor people, women, older Americans and small business owners.

1. The Individual Mandate

The individual mandate, implemented as part of the Affordable Care Act (ACA), required nearly everyone to have health coverage or pay a penalty. Other key provisions of the ACA included guaranteed-issue coverage regardless of preexisting conditions; premium tax credits to make coverage affordable; essential health benefits as well as annual and lifetime benefit maximums; as well as guaranteed-issue coverage regardless of preexisting conditions.

ACA requires employers to offer coverage or face a penalty; however, the Trump Administration is proposing a new rule which would permit employers to shift millions of employees away from traditional employer-sponsored group coverage into individual plans purchased using Health Reimbursement Arrangements (HRAs), which provide tax-free funding that can be used on the individual market.

RAND has developed its COMPARE microsimulation model to simulate how individuals might respond to changes to the individual mandate, with our results suggesting that altering how this requirement is worded could result in fewer enrollees enrolling and those who do enrolling may opt for lower coverage options.

2. The Subsidies

Many consumers who purchase health coverage through the marketplace are eligible for premium subsidies to help make coverage more cost-effective. These subsidies depend on each person’s MAGI (Medicare Adjusted Gross Income) as well as how much their benchmark plan costs in their area.

People whose MAGI exceeds 400% of FPL typically aren’t eligible for subsidies; however, they may still get assistance through Medicaid in states that have expanded it. But this rule was temporarily put on hold due to Congress passing a temporary law called American Rescue Plan and Inflation Reduction Act which suspended this rule temporarily.

Each year, their subsidy varies based on the cost of their benchmark plan and expected changes to MAGI over the year.

3. The Website

Obamacare was designed to resolve the healthcare crisis in the US by offering affordable healthcare insurance plans. Since its implementation, Obamacare has successfully reduced deficit spending while improving quality healthcare provision in many communities and helping create full-time job opportunities. Unfortunately, however, its implementation was marred by technical glitches that made signing up difficult; these were eventually addressed and enrollment has since grown considerably – although signing up still may take a bit more effort than anticipated.

4. The Uninsured Exemption

Even under President Donald Trump’s efforts and his administration, the Affordable Care Act remains strong due to its many strong buttresses ranging from insurers, state attorneys general and private advocacy groups.

However, an outcome from the Supreme Court could do serious damage to Obamacare. Three justices appointed by Donald Trump – an outspoken opponent of law enforcement – would most likely exacerbate its damage.

An ACA ruling could prove politically devastating for Republicans. Voters may put healthcare at the top of their agenda and give Democrats an opening in vulnerable congressional seats where Trump stands to lose seats in Congress. That is why many GOP lawmakers fear another unsuccessful attempt at repeal and replacement; given they cannot reach agreement on an alternative plan.

5. The High Costs

Barack Obama promised voters he would sign a health care bill that reduced family premiums by $2,500 and did just that. Yes, the Affordable Care Act may be expensive, but its rules have helped make premiums affordable for millions of Americans.

The Affordable Care Act has introduced numerous taxes, particularly on medical device sales and higher incomes. Some economists believe these changes will eventually lower costs for all while simultaneously decreasing deficit spending.

The Trump Administration has taken several actions to undermine the Affordable Care Act (ACA), destabilizing insurance markets and rendering coverage less affordable or unavailable to millions of Americans. But the ACA continues to provide coverage to 7.3 million marketplace consumers while also helping lower costs for the 176 million with employer-sponsored insurance; spending in 2017 in individual markets was $650 billion less than anticipated and just above where it was at 2010. These are significant successes.

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About the Author: Raymond Donovan