The American Health Care Act has passed in the House with the Republican hopes that it will replace Obamacare. However, because the AHCA narrowly passed in the House, it’s likely to be in a contentious battle in the Senate.
Indeed, the Senate is drafting its own version of the legislation, meaning the final version will be hammered out in committee. But assuming that the American Health Care Act does make it into law as it is currently written, you may wonder how will it affect you and your family.
Eliminating the Penalties
A major issue with Obamacare has been the mandatory requirements to purchase health insurance, whether a person or family wanted to or not. At the same time, large companies wouldn’t be required to carry health insurance for their workers, and wouldn’t be penalized for failure to do so.
Many younger people who would have chosen to not carry insurance in the past were forced to purchase insurance or risk substantial penalties. These requirements forced a captive audience into buying insurance–with predictable results. The so-called affordable insurance actually increased premiums by a whopping 24.4 percent, according to a study cited by Forbes. Furthermore, medical costs increased almost 70 percent.
After all, if you don’t have any competition for your product, you can set your rates to whatever you’d like. With Obamacare, most people who had to buy their insurance on the ACA exchange discovered that the lowest priced insurances cost a small fortune and had a high deductible.
Those who could to do so simply paid the penalty and opted-out; those who couldn’t, or needed insurance, bought the least expensive plan available and hoped they wouldn’t have to use it.
Eliminates Tax Increases
One of the many problems introduced by Obamacare was the tax increases on the wealthy and industries such as medical device manufacturers, insurance companies, tanning salons, and pharmaceutical companies.
The American Health Care Act removes those taxes so that the companies no longer have to pass the charges to their customers. Those who are higher wage earners can breathe a sigh of relief, because they are no longer being charged for one more tax.
Obamacare first caused insurance rates and medical costs to skyrocket and then paid subsidies to those who could not afford the insurance. The House bill offers tax credits, rather than subsidies to those who could use the help paying their insurance. Instead of need, it will be based on age. Younger people in their 20s will get around $2,000. If you’re in your 60s, you can expect around $4,000.
There is an income cap on the benefit with it being reduced if you make $75,000 or more, and eliminated if you make more than $215,000.
States Have More Say
States may be granted waivers to allow insurance companies charge up to five times more in premiums to older persons than younger. They may also be able to petition to allow insurance select what it will offer in certain programs.
For example, it doesn’t make sense to provide maternity policies for people in their 60s. Why should they have to pay for services they will never use? States can also get waivers on insurance companies providing certain services.
Medicaid will be limited and the states can require those who obtain Medicaid to work. The AHCA doesn’t allow Medicaid expansion, and provides a fixed amount per person enrolled in the program rather than have an open-ended policy.
This will help keep the costs down and may ensure that people who are not working will work if they are receiving Medicaid dollars.
Other Effects
If the person lets his or her insurance lapse for more than 63 days within the year, the insurance company will apply a 30 percent surcharge. Insurance companies can also charge more to people with preexisting conditions if they allow their insurance to lapse for more than 63 days.
Preexisting conditions will still be covered, but there may be rate increases associated with them. States may be able to get rate increases waived if they have a special fund set up to handle people who have more expensive, long-term conditions. The point is to drive down the costs so that insurance becomes more affordable.
It should also be noted Planned Parenthood will not be funded for a year. This may help decrease the number of abortions being performed there.
~ Conservative Zone
