ACA Beneficiaries Could Be in Trouble with New Plans

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Analysts are of the opinion that many beneficiaries who enjoy advantages under the Affordable Care Act could well end up losing all of them under the new policy being put forward by the Republicans. During his campaign and more recently, as President, Trump has repeatedly made his dislike for the Affordable Care Act known and he has promised to repeal it, more than once. Millions of Americans have been on tenterhooks ever since the elections, simply because the fate of the Act, also known as Obamacare, remained unknown. Now, it appears that their worst fears have come true.

Older Americans will be most affected

The analysts believe that while the new policy could be setbacks with the health insurance for a huge majority of Americans, the most deeply impacted segment could be 50 to 60 year old age group. This could come as a major blow to these individuals who may end up with poor medical coverage at a phase in life when medical costs tend to inexorably keep rising. The analysts feel that the new legislation proposed by the Republicans may make adequate coverage fairly unaffordable for this age group.

A quick look at the new plan

To give a quick overview, the proposed legislation aims to eliminate the subsidy that individual’s get based on their income and insurance costs. Replacing these would be tax credits ranging from $2000 to $4000 that would be determined based on the individual’s age. The problem with this is the credits do not make up for the cost of premiums as well as the existing Affordable Care plans do. A good number of Americans may have to switch to no- insurance simply because they cannot afford to have coverage anymore once the new plan kicks in.

A Standard & Poor’s report has indicated that some two to four million people will be out of the personal insurance arena and this will mainly constitute of older Americans who are still too young for Medicare. In a second blow to older Americans, the Republican plan will also allow insurance providers to charge higher differential rates for young and old customers. Starting next year, they will be able to charge five times as much for an older person as for a younger one. At present, they are limited to charging three times as much, at a maximum.

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