A New Trump Plan Could Offer Catastrophic Coverage


The report also notes that although average premiums would increase prior to 2020 and decrease starting in 2020, older people will pay "substantially more" (because they consume more medical care). Under the new plan, they can be charged five times more.

Laura Polacheck, communications director for AARP Utah, said the plan would shorten the life of Medicare, raise insurance costs for those who can least afford it and put seniors' ability to live independently at risk - all while giving tax breaks to drug and insurance companies. The pre-ACA insurance market doesn't exist anymore, and Americans won't stand for having 20 million people suddenly tossed off coverage. A dramatic example, as reported by Business Insider, concludes that under the new plan the 400 wealthiest households in America get a tax cut of seven million dollars per household per year.

ESSENTIAL HEALTH BENEFITS: ACA-mandated categories of benefits that health plans must cover.

But it is a solid starting point for the unavoidable revamping of the health insurance system.

Republicans have had seven years to develop an alternative to the ACA, yet they are now rushing a bill through Congress that will have devastating consequences for millions of Americans.

The bill is now facing criticism from both sides of the aisle, and it's still unclear how the bill might change before it lands on the President's desk.

Subsidies for insurance now tied to low incomes will give way to tax credits which get incrementally higher with age, further hurting younger low-income folks struggling to make ends meet.

Many younger Americans found that it was much cheaper to pay the penalty than the insurance premiums. In California virtually no policies will qualify for the tax credits due to their coverage of abortion services!

"What we have learned in this process is that the Republicans aren't really interested in trying to address problems in the health insurance market", Hernández said.

But when Fielder and Adler adjust the CBO estimates to get an apples-to-apples comparison - stripping out the effects of age and plan changes, and calculating the effect on premiums if participant pools and plan generosity were unchanged from under the ACA - they find the CBO model has premiums rising substantially as a result of the AHCA. In fact, their plan was kept locked away from the prying eyes of even fellow Republicans. "This plan is a tax cut for the rich at the expense of insurance coverage for hard working people".

Visit Repeal & Replace Watch for more KHN coverage of the health law debate. The measure that passed in committee last week would reduce the number of insured people by 14 million next year and 24 million by 2026, the CBO said Monday. That would, in turn, lower the cost for covering the most expensive treatments and patients with pre-existing conditions. "Even with many unanswered questions, it's clear this proposal will leave many more Americans uninsured, and far more dealing with higher health care costs".