What’s It Mean For Me?
American Health Care Act Part I
Congress has recently released plans to replace the current national health system here in the United States and as with anything that the Federal Government does that affects our lives, it has created a huge number of questions. Below is a brief highlight of the changes proposed to our national healthcare this last week and on the surface, some of these line items might seem like a great deal but for every opportunity, there is a cost. The long-term cost of some of these line items could actually increase healthcare for the common individual rather than cut cost. This alternate plan to the Affordable Care Act has created a stir on both sides of the political spectrum as politicians, medical professionals, and healthcare watch groups doubt the dubious nature of the “improvements” to our national healthcare.
1) Individual mandate
Repeal
Eliminates the individual mandate. Instead, introduces a "continuous coverage incentive" which charges individuals a 30 percent penalty for lapses in health coverage.
2) Employer mandate
Repeal
3) Subsidies for out-of-pocket expenses
Repeal
Repeals in 2020.
4) Premium subsidies
Change
Uses age, instead of income, to calculate how much a person should receive. Households earning less than $150,000 and individual’s earnings less than $75,000 will receive tax credits in full, but they will be capped for higher earners. For a person under 30, the subsidy would be $2,000, and double for people over 60. The bill also expands the type of health plans that qualify for subsidies.
6) Medicaid expansion
Change
Medicaid expansion will be kept, but federal funding for states as promised under the A.C.A. will be stopped in 2020. Federal funding for people who leave the program and return, or who are eligible staring 2020, will be reduced. The bill also proposes capping federal funding per enrollee, based on how much each state was spending in fiscal year 2016.
7) Health savings account
Change
Raises the cap, and allows for spousal contributions. Starting in 2018, individuals will be able to place $6,550 into a tax-free health savings account (compared to $3,400 now) and families $13,100 (compared to $6,750 now).
8) Restrictions on charging more for older Americans
Change
Plans will be allowed to charge up to five times as much for elderly customers, as opposed to three times as much. States have the option to choose their own ratio.
9) Dependent coverage until 26
Keep
10) Pre-existing conditions policy
Keep
11) Essential health benefits
Keep
12) Prohibitions on annual and lifetime limits
Keep
(Courtesy of Bob Fredericks, The New York Post, 3/10/2017)
I would like to take this time to state that I am not promoting any one particular political party view but I am trying to inform my readers as to what is going on and some of the possible repercussions to these changes. There may be those readers who disagree with national healthcare on principle and then at the other end of the spectrum believe that the Federal Government should pay for everything…as we move forward in the foreseeable future, I don’t see either of those options happening anytime soon as the current landscape of our country doesn’t allow for it. In order to keep this post manageable, I intend to break this topic up into multiple posts for easier consumption. There are dozens of reputable news sources who are churning out a blinding amount of information on this topic and I encourage you to wade into the fray to inform yourself to the best of your ability.
The question of national healthcare is one that goes back over a hundred years here in the United States as various administrations have tried and failed to get national healthcare for our citizens. The earliest push for healthcare was for basic insurance coverage for all Americans over a hundred years ago with the belief that healthy people made for better, more productive workers and thus a more vibrant economy. The other industrialized nations in Europe had started to adopt national measure to protect their populations in the late 1800’s and early 1900’s and these nations have had well over a hundred years of making adjustments to arrive at the systems they have today. Healthcare is complicated to say the least…it’s complex and there is no one method that is going to make everyone happy. It is going to take trial and error, empathy and equality but most of all it is going to take communication and compromise…a willingness to have dialogue and finding a way to move forward for the benefit of all, not just party lines. I know it’s a complex subject but when I return Monday, I will begin to break each item down for better understanding. As I hope everyone has a great weekend and stay warm during this late winter cold snap…warm weather will be back soon. Take care of yourself and each other, remember, we’re all in this together.
Wm Reid
Best Home Care Services
325 N Eastern Ave
Connersville, IN 47331
765-827-9833
wmreid@bhcshealth.com