For the past two weeks, the Republican Party has hid their Obamacare replacement plan in a literal basement waiting for their members to review — and now we know why. The American Healthcare Act is literally bad for everyone.
Here’s exactly bad it is for you, based on how precisely you’re insured right now:
1. You get your insurance through Medicaid
You’re fucked in the long term.
Thanks to Obamacare, 10.7 million Americans were able to get healthcare through Medicaid who weren’t before. Under Trumpcare, enrollment in this expanded program is allowed in 2020. In 2020, there will be a “freeze” in the Medicaid expansion and nobody new will be allowed to join unless they meet the old requirements, which were much more rigorous.
You won’t be kicked off your insurance, but if you ever need the expanded Medicaid in the future, it won’t be there for you. This an especially big concern, because Trumpcare also redefines how Medicaid operates. Currently, every single enrollee is gaurenteed coverage by the federal government — no matter the cost. Trumpcare changes Medicaid funding to a block grant that is handed to the states. If the state runs out of money, all Medicaid enrolles are in trouble.
2. You get your insurance through one of the healthcare “exchanges”
You’re really fucked.
Trumpcare gets rid of the “individual mandate,” meaning that people aren’t required to buy health insurance. So at least some number of healthy people who can get by without insurance will drop out of the market.
Because less healthy people are in the market (who are cheap to cover vs. sick people who are expensive), prices will go up for everyone. The ObamaCare rising premiums are gonna look like pennies compared to the incoming Trumpcare rates.
To make matters worse, if you are getting help with your exchange insurance with a tax credit, it’s gonna get a lot smaller. This is surely going to force a lot of people off their current plans. And where do they go?
3. You get your insurance through an employer or college
You’re fucked, too.
The rising premiums that will impact those buying insurance off the market will hit you too. And unlike those currently buying off the exchange, you most likely won’t have ANY tax credits to offset your cost.
4. You don’t have insurance / might lose it if it gets super expensive
You are bigly fucked.
The good news is that the penalty you pay for not having insurance will go away. Unfortunately, Trumpcare indirectly penalizes people for not having health insurance.
If you get really sick and decide you need to have health insurance (say cancer, organ transplant, etc.), insurance companies will be allowed to charge you 30% extra for an entire year.
That’s to say, Trumpcare could push people off their current plans because they’ll become more expensive with the reduced tax credits, and then people will get penalized thousands of dollars for needing insurance once they get sick.
Even if you decide to get insurance before getting sick, the decreased tax credits and increasing premiums will make that very challenging.
4. If you get your insurance through your parents
You’re not as fucked as you could be.
Trumpcare does not remove the provision allowing children to stay on their parent’s health insurance plans until they are 26. However, if all you know about your health insurance is that “my parents pay for it”, then you should do some research to see if it might be in danger under Trumpcare.
Many colleges require insurance, and it could put you in a bind if you’re enrolled in classes and you suddenly might be expected to procure insurance for yourself.