Since the beginning of his campaign, Trump declared his intention to repeal Obamacare, winning the support of a large number of voters. Now, Trump has once again followed through on his promise. According to the latest reports from foreign media, the U.S. House of Representatives voted on Thursday, passing the Republican bill to repeal and replace parts of the Affordable Care Act with a vote of 217 to 213. Thus, Obamacare has been officially repealed.
Analysts believe that although the new healthcare bill has been passed by the U.S. House of Representatives, it will not be implemented immediately and must still await a vote in the Senate. However, with the U.S. Senate controlled by Republicans under Senate President Orrin Hatch, its passage is essentially a foregone conclusion.
Key Reforms in Trump's New Healthcare Plan:
Determining Healthcare Tax Credits Based on Age and Income
Previous healthcare tax credits were based on the policyholder's income and family planning. The new healthcare plan, however, has been modified to determine tax credit amounts based on age and income.
Under 30: $2,000;
30 to 39: $2,500;
40 to 49: $3,000;
50 to 59: $3,500;
60 and older: $4,000.
If an individual's income exceeds $75,000 or a couple's income exceeds $150,000, the tax credit amount decreases by $100 for every $1,000 increase in income. All family members are eligible for healthcare tax credits, but the total tax credit for a household is capped at $14,000.
Elimination of Penalties for Those Without Health Insurance
The penalties for individuals who do not purchase health insurance and for employers who do not provide health insurance to their employees are eliminated. Instead, if a policyholder has been without insurance for more than 63 days in the previous year, their premiums will increase by 30% for one year when they re-enroll.
Weakening Protections for Individuals with Pre-existing Conditions
Insurers are permitted to charge premiums based on a client's health status. The Trump team agreed to allocate $8 billion over 5 years as a special fund for "pre-existing condition coverage." This includes $1 billion per year for the first two years and $2 billion per year for the following three years.
Termination of Tax Increases on Certain Industries
Termination of tax increases on high-income individuals and related industries (such as pharmaceutical manufacturers, medical device manufacturers, insurance companies, etc.).
Reduction of Financial Subsidy Programs for Low-Income Individuals
Reduction of financial subsidy programs for low-income individuals, and a requirement that low-income individuals applying for Medicaid must be employed. States are prohibited from expanding Medicaid programs for low-income individuals. The method of financial subsidy will change from the original open-ended plan that reimbursed beneficiary expenses to a fixed annual financial grant to each state.
Permitting Insurance Companies to Charge Older Clients Higher Premiums
Under the current Obamacare, insurance companies are allowed to charge older people a maximum of three times the premiums charged to younger people. The new healthcare plan allows insurance companies to increase premiums for the elderly to five times that of younger people.
Young People Under 26 Can Be Included in Their Parents' Health Insurance
This provision from Obamacare has been retained.
Key Highlights and Effects of Trump's Healthcare Reform:
First, Trump no longer prevents insurance companies from imposing conditions based on a policyholder's previous health status, instead allowing states to decide whether insurance companies can charge more to those with prior health issues.
Second, Trump has repealed government subsidies used to help pay for health insurance, allowing people to use various tax incentives to pay for health insurance, such as tax credits, tax deductions, and Health Savings Accounts (HSAs).
Third, Trump has eliminated the individual mandate, but the new policy requires people to purchase insurance, or they will face significant increases in additional costs.
Trump has provided substantial tax incentives for the middle class and wealthy Americans, but it does reduce the accessibility of insurance and increases healthcare costs for the poor.
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