Trumpcare information

Trumpcare information

Some Trumpcare facts about what Trumpcare would look like as well as what Trumpcare looks like in some comparisons to Obamacare vs. Trumpcare. 

What is the Definition of Trumpcare?

What is the meaning of Trumpcare – Trumpcare is the informal name AHCA (American Health Care Act), for the proposed replacement of the ACA Affordable Care Act, also known as Obamacare unveiled by the House Republican leadership on March 6, 2017. Also, known as Ryancare; since the proposal was first spearheaded by Paul Ryan, Republican Speaker of the House. The day after the plan went public Trump gave his support and then he pressured Republican lawmakers whom were still wavering to vote for the plan.

How may Trumpcare Deal with the Individual Mandate for 2019

Trumpcare individual mandate – Individual and employer mandates were introduced into the health care system by the ACA “Affordable Care Act.” The ACA mandate requiring people to sign up for health insurance came up a quite a bit in the 2016 presidential campaign. There are 2 versions of the mandate one for individuals and one for employers. While republicans notoriously oppose both mandate Trump sees both value and the intent of both mandates.

Mandates with Trump

Back in February 2016 Trump sent shockwaves throughout the Republican Party when he mentioned his support in favor of the individual Mandate. Shortly after Trump was elected president he was repeating a GOP battle cry which has been used since the ACA was first introduce as Trumps sticks closer to the party line.

Trumpcare Bill Status – American Health Care Act (AHCA)

By a margin of only 4 votes, the House of Representatives took a big step when they passed the AHCA; referred to by many as Trumpcare. Below are 10 things involving healthcare legislation changes if enacted with all the current provisions.

1. Will Eliminate the Individual Mandate

Trumpcare would allow people to have a choice and not purchase health insurance should the choose. Encouraging individuals to maintain health insurance coverage will be done with a financial incentive allowing insurers to charge a 30% penalty for buying insurance after a gap of more than 63 days in their coverage. Obamacare required all Americans to pay a penalty if they do not get health insurance.

2. Tax Credits will replace Obamacare premium subsidies.

All Obamacare subsidies which help some individuals pay for their health insurance would go away.  Tax credits will replace subsidies for those who is not covered through a government program or by their employer. Tax credits, based on age will range from $2,000 – $14,000. Families would receive higher tax credits than individuals. Individuals making over $75,000 per year and families who make over $150,000 per year would have reduced tax credits.

3. States can obtain waivers to change “Essential Health Benefits.”

Waivers can be applied for by states allowing the state to change federally established minimum benefits which were imposed by Obamacare for all health insurance policies had to offer as a minimum. Theses minimums for “essential health benefits” included substance abuse services, mental health, preventive care, prescriptions drugs, maternity care, lab and emergency services. The waivers are intended to have a reduction s in minimums to reduce healthcare coverage costs and increase the number of people who have healthcare coverage.

4. States can obtain waivers which would allow insurers to charge higher premiums for pre-existing conditions.

Trumpcare would allow states to obtain waivers to charge insurers with a gap in coverage more for pre-existing conditions. Health insurers under Obamacare were prohibited from charging more for individuals who have pre-existing conditions.

5. Subsidies provided for some who have pre-existing conditions.

$8 Billion would be provided by Trumpcare specifically for the states obtaining the waiver mentioned in the previous point which would provide subsidies for individuals who did not maintain continuous coverage and have pre-existing conditions. This legislation would also provide $130 billion for states to use for this same purpose and/or expanding coverage while reducing costs in different ways.

6. Insurers would be allowed to charge up to five times the rates for older adults above what younger adults are charged.

Trumpcare is raising the ratio limit for older adult premium maximums from 3 (Obamacare limitations) to 5 (Trumpcare) times of what a younger adult is charged.

7. Obamacare Roll Back for Medicaid expansion

Trumpcare repeals the Medicaid expansion for funds provided by Obamacare to states. States will have a choice to receive set amounts for either “per beneficiary” or a “lump sum block grant” from the federal government.

8. Medicaid work requirements allowed, can be implemented by states

Under Trumpcare, states can choose to require “able-bodied” Medicaid recipients to work, help with community service, participate in a job training program.

9. Expansion of Health Savings Accounts

Trumpcare would increase maximums for annual health savings accounts (HSA) contributions from the current $3,400 for individuals to $6,750 and current $6,550 for families to $13,100 to begin in 2018.

10. Repeal of Obamacare consumer taxes

A laundry list of Obamacare taxes was included, a tax on certain prescription drugs, health insurance plans, a tax on indoor tanning services, capital gains, medical device tax, dividend and interest income tax on higher-income Americans. All these taxes would be eliminated under Trumpcare.

Obamacare is still currently the law. While the House passed the AHCA, the legislation now will go to the U.S. Senate for deliberation. If no changes are made by the Senate, the bill would go to President Trump for his signature.