Trumpcare spells higher premiums for most Americans

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On March 6, President Trump passed the American Health Care Act which may raise insurance premiums for many Americans. (Photo by Michael Wiser)

On March 6, President Trump and Congressional Republicans released the American Health Care Act to replace Obamacare, which was soon deemed, fittingly enough, “Trumpcare.” The House did not have the votes to repeal the Affordable Care Act – instead, they are using a “budget reconciliation to change spending and tax aspects of the ACA,” as The Balance, an investing and finance reporting website, attests.

So, while the Trump Administration is not able to completely revoke the act, President Trump has promised to keep the two most popular Obamacare benefits: the first being that three million young adults up to age 26 can stay on their parents’ plan, and secondly, those with pre-existing conditions will still be able to receive insurance.

Along with removing the individual tax on those who do not buy insurance (which would ultimately raise health insurance costs), Trumpcare, formally named the American Health Care Act, will remove the tax on companies that do not provide coverage to their employees and eliminate Medicare taxes on high-income earners ($200,000 or more yearly).

Trumpcare would also see a replacement of Obamacare tax credits, which allow people without company-sponsored health insurance to purchase individual or family plans. The replacement comes in the form of a flat-rate tax credit based on age.

 

Age

Tax Credit

Younger than 30 $2,000
30-39 $2,500
40-49 $3,000
50-59 $3,500
60 and older $4,000

This means that insurance premiums will most likely rise for most Americans. The Balance created a substantial grouping of people who are at risk of paying more. This list includes the elderly, pregnant women, employees whose executives were instructed to provide ACA and were then taken off, 22 million Americans who received government subsidies or Medicaid expansion and those using mental health services or drug rehab.

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