BY: DANIEL PETERSON
The Trump administration is busy trying to decide how, and how quickly, to halt President Obama’s Affordable Care Act.
Currently, about 28 million Americans are uninsured, greater than 41.3 million in 2013, mainly originating from; the Affordable Care Act that has expanded Medicaid, and the creation of online marketplaces for health insurance.
A repeal could increase the population of newly uninsured Americans,
The losses will occur because of people who won’t be able to afford health insurance minus the assistance of federal subsidies which is currently offered under the law, and people who would be no longer capable of obtaining Medicaid insurance under the law’s expansion. Additionally, ending the mandates would raise the number of voluntarily uninsured Americans, who will make their personal rational calculation that, they are healthy and young enough to manage to pay less for their own health care needs, than if they purchased insurance coverage.
The law requires that even healthy and young people who previously lacked insurance must obtain coverage. To stay optimal, insurers might be forced to quit providing insurance covers or increase premiums for the majority or all of the citizens they insure.
The Kaiser Family Foundation predicted that if the pre-existing provision condition is changed, 52 million Americans could face the risk of being denied insurance coverage in the future.
Provision of the Affordable Care Act significantly reduces the amount that elders on Medicare have to incur for their medicines. Before adopting the law, beneficiaries enjoyed coverage up to a certain dollar amount, not until full coverage provisions stepped in.
Commonwealth Fund-Rand study reveals that the current policyholder who bought coverage on the marketplace annually pays, on average, $3,200 out of pocket for the premiums among other costs, like copayments. It noted that repealing the law alone, minus a replacement, would raise out-of-pocket expenses to $4,700 annually.
You might reason that getting rid the Affordable Care Act would secure the federal government’s funds. Actually, in many cases, it won’t. It’s because the government did not just spend money, it had to raise revenue through taxation, and it adopted policies designed to keep costs in balance. So repealing the law also eliminates the revenue it initially generated.
As per a recent report, it is predicted that in 10 years’ time about 50% of the $800 billion of revenue losses will originate from investment and payroll surtaxes on income and wages above $200,000, which currently contribute a substantial revenue. A quarter of the revenue losses would be from increased fees on insurers, drugs and medical-device companies.