What’s in the New Health Care Plan?
There's been a lot of speculation about just what President Trump's new health care package will contain and, yesterday, we managed to get at least a few details on the subject. Republicans in the House have released some information about the new health care plan designed to replace Obamacare.
For one thing, under the new health plan, there will be no more penalty for folks who don't want the government coverage. Instead, the feds say they will offer tax credits to who get thir insurance on the open market.
The new plan scraps fines imposed on taxpayers who do not purchase insurance and instead offers tax credits to those who purchase coverage in the open market. According to Chief Healthcare Economist for Blue Cross Blue Shield Louisiana Mike Bertaut :
“I’ve seen actuarial studies that would suggest that taking away that government requirement that you have health insurance could raise rates in the individual market as much as 20%,”
Folks who let their policy lapse could face some pretty stiff fines and penalties under the new plan as well. Among those penalties, there could be a 30% rate hike for up to a year. Bertaut also says that, under Obamacare, the tax credits are based on one's income,but that under the new plan, those credits will be based on age.
“Doesn’t matter if your insurance costs $2,000 or $5,000, under 30 you get a $2,000 credit, under 40 it’s $3,000, and then under 64 it’s $4,000,” Bertaut said.
Bertaut pointed out that people’s biggest complaint about the ACA was how much premiums rose after it was enacted. According to Bertaut, the reason for the rising cost is that many people are having access to insurance that never had it before and the situation is forcing up the cost of the coverage.
“So the first time they go to the doctor they find out you’re diabetic, you have high blood pressure, and high blood sugar, and so they have all this unmet healthcare needs that they’re catching up on,” Bertaut said.