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How The New Trump Care Bill Could Affect Health Care Consumers

Sudhir Mathuria Licensed Professional Health Life 360 6776 Southwest Freeway, Suite # 178 Houston TX 77074 713-771-2900 www.MyMedicarePlanning.com

Sudhir Mathuria
Licensed Professional
Health Life 360
6776 Southwest Freeway, Suite # 178
Houston TX 77074
713-771-2900
www.MyMedicarePlanning.com

Continued from Last Week
Tax credit changes
Under the new bill, qualifications for tax credits to help pay for health insurance would change significantly.
While the ACA offers a scale of credits that take into account family income, cost of insurance and age, the Trump care plan would offer flat tax credits per individual, focused on age. The House GOP bill would provide tax credits of $2,000 to $14,000 a year for individuals who don’t get insurance coverage from an employer or the government. The credits would be based on age instead of income and would be capped for higher earners.
People who are older, are lower-income or live in areas with high insurance premiums would likely receive smaller tax credits under the new bill than they do under the ACA. Those who are younger, have higher incomes or live in areas with lower insurance premiums would likely receive more government assistance than they currently do, according to the Kaiser Family Foundation.
A 64-year-old who makes $26,500 a year could see net out-of-pocket costs increase from $1,700 a year under the current law to $14,600 a year under the GOP plan, according to Congressional Budget Office estimates. A 40-year-old making the same amount would pay a few hundred dollars more after the tax credits, from $1,700 under Obamacare to $2,400 under the GOP bill.
Medicaid
The new bill calls for major changes to the way Medicaid is funded. First, the federal support of expanded Medicaid coverage, to those earning no more than 133 percent of the federal poverty level, would be rolled back. States that expanded Medicaid would no longer receive extra funds for new expansion beneficiaries after 2020, Kaiser Health News said.
People who receive Medicaid would be required to work unless they are disabled, pregnant or elderly.
Beginning in 2020, federal Medicaid financing would be changed to a per capita cap rather than a matching program, under which the federal government has supplied funds based on the number and needs of the enrollees.
Additionally, after 2020, state Medicaid plans would no longer be required to provide ACA-designated essential health benefits, including emergency services, pregnancy and newborn care, prescription drugs and pediatric services. Capping federal funds for Medicaid could have a huge impact on seniors and disabled children who depend on that coverage, according to Pollitz.
“There are 75 million people on Medicaid today. It’s the second-largest source of coverage,” she said. Employer coverage is the largest.
She pointed out that without federal funds to help with Medicaid coverage, states may have less money to help fund high-risk pools or other subsidies to help people afford health care. The changes would reduce $880 billion in federal spending on Medicaid over the next decade, pushing onto the states more of the financial burden for covering more than 74 million people in the program, according to the Kaiser Family Foundation
“It would be a big hit for states,” Pollitz said. “It matters for the coverage and what states are going to be willing to spend in addition to this federal grant money. They’re going to have their hands full.”
Older adults vs. younger adults
Under the ACA, insurance companies may charge an older person no more than three times its premium for a younger person with an identical plan. The new bill would increase the maximum allowable ratio to 5 to 1, which could significantly increase older people’s premiums for comparable plans. States would be able to set different maximum ratios. Older Americans not yet eligible for Medicare would be at risk for expensive premiums. “They will face higher premiums than they currently do, and the younger people will face [lower] premiums.”
To choose right Medicare Supplement, Medicare Advantage Plan or Medicare Prescription Drug Plan contact Sudhir Mathuria @ 713-771-2900.


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