The repealing of Obamacare will upend the Affordable Care Act and strip around 23 million Americans of their health coverage, as per the CAP analysis. The Obamacare repealing lawsuit was initiated by the anti-ACA-agitators and was backed by the Trump administration, who is consistently attempting to dismantle the ACA, along with its coverage expansion and consumer protections. During the time of the pandemic, the importance of comprehensive health coverage is well understood by the masses and this coverage has never been of so important for the people. The repealing of Obamacare will also affect both current and future Medicare beneficiaries. Thus, this abolishment will affect nearly everyone in the nation. The ACA comprises of 165 provisions that affect Medicare, right from improving benefits for current beneficiaries to creating long-term financial resources to benefit future beneficiaries. To fund the new health law, this program can expect future cuts.
Repealing of Obamacare will affect the following:
Expanded Medicare Benefits
Medicare beneficiaries since 2011, are receiving free preventive screenings such as mammograms, colonoscopies, and also free annual wellness visits. Before Obamacare, beneficiaries of Medicare had to pay a co-payment for receiving preventing screenings and tests along with a percentage of the doctor’s bill. Keeping in mind that around 50% of the Medicare beneficiaries had an individual income of less than $24, 150, it can be said that had significant savings with the expansion of Medicare benefits. This law also had provisions to end the coverage gap of Medicare Part D plans. Before the ACA, beneficiaries had to pay 100% of their drug costs but now they are responsible to pay 25% of the generic and branded drug prices after meeting their deductible.
Though the Medicare program’s spending rate is increasing, its financial standing has actually improved. Since the Affordable Care Act has implemented several cost-cutting provisions, thus the repeal of the ACA would lead to higher premiums and deductibles. This is certainly bad news for the beneficiaries.
Due to the Affordable Care Act, millions of Americans have access to government-subsidized health plans. Albeit, to implement this, the government had to raise the taxes of the rich. A 3.8% of tax was imposed on specific net investment incomes and another 0.9% of tax was levied on individuals who make over $200,000 in a year and $250,000 for a married couple filing tax together. A major portion of this tax hike will likely disappear from any replacement plan because Republicans want to eliminate these new tax increases. Republicans always prefer to keep people covered while keeping both deductibles and premiums low, and so it is expected that they will reduce funding in other programs like Medicare and Medicaid. Depending upon their age and income people receive refundable tax credits by the American Health Care Act. It further allows states to waive some protections for people having pre-existing conditions and also allow insurers to charge higher premium rates from older consumers.
Individuals whose coverage has lapsed are levied a 30% surcharge on the premium. According to these provisions, it is clear that young and healthy individuals will be able to get cheaper health plans, whereas Americans with high income could get perks and tax breaks. There is also a possibility that low-income Americans will lose coverage, as the bill will bring an end to the expanded Medicaid funding. Individuals having health issues may also find that their health plans do not longer cover all their healthcare expenses. Some of the states already possess the power to allow health insurers to offer inadequate health plans. With all the changes going in the political world, time will only tell how these changes are going to affect the health insurance sector.
It can be said that the Trump administration and its friendly state leaders are trying hard to undermine healthcare in the middle of one of the worst pandemic that has caused disaster to the U.S. public health sector. The ACA is significant, as it helps families receive coverage and have some financial security against their healthcare costs. With the Supreme Court ruling against the ACA, it would take away health coverage from millions of Americans, whose lives have already been affected by economic distress. This will further cause big concerns about their health and well-being.