I am not an individual health insurance guru because I’ve always received coverage through my company, but I do have a child over 20 who is on my insurance. My understanding is the obamacare subsidized premiums and deductibles, and the new one gives tax credit (correct me if I am wrong). An elderly would get 6K tax credit, but it is hard to get health insurance with 6K.
I know there are a lot of posters with a lot more knowledge about health insurance than some of us, and this issue touches many of our lives. Let’s try not to get political. Let’s just try to understand pros and cons of new vs old.
The new plan replaces the ACA’s tax for not having medical insurance with a 30% penalty for buying medical insurance after having a lapse in coverage.
That may not be enough to prevent adverse selection (just as the ACA’s tax for not having insurance was too small to be fully effective at that), since a 30% penalty to buy insurance with pre-existing condition coverage after having none is still a lot less expensive than paying for a newly diagnosed expensive medical condition.
The new plan’s $2,000 to $6,000 tax credit (depending on age, not income like ACA) seems to be rather small compared to the cost of individual medical insurance plans (even higher deductible ones).
Considering that DH,whose self-employed, and I are over 60, I’m most concerned with what our premiums may be in the years until we reach 65. I’m fully expecting to pay around $25,000/year before we’re Medicare-eligible, and not for what is now considered a gold or silver plan. Whatever tax credit we may receive under the new plan won’t make up for the increase in premiums.
The “losers” seem to be folks who were getting big subsidies (including pre existing pool people) and the elderly.
Winners are young people, as young people can simply say “no” or get cheap catestrophic plans, they will no longer subsidize others in the “full plans”. Which is good for them.
I think they also repealed the extra Medicaid tax didn’t they? So folks over those thresholds win.
Devil is in the details that don’t exist yet. It has not even been scored yet it is so light.
Personal opinion…the income for receiving a tax credit as an individual is $75,000, and a couple $150,000. Why? Those incomes are double to triple the average for,the country.
I would rather see a larger tax credit…with an income cut off of $50,000 for individuals and some way lesser amount for couples.
But the biggest missing piece…what is going to be in this legislation that prevents insurance providers from pulling out of the individual market? That was a huge hole in the ACA and hasn’t seemed to change at all.
My kid lives in a place where there is only ONE provider for individual purchasers…ONE. And I think it’s a matter of time until that one pulls out.
What good is a tax credit, or subsidy of,there isn’t anything to buy.
Also…can one get a tax credit that exceeds their actual taxes owed? I don’t think so. So what good will this do for very low income in states without Med expansion?
Thumper1 - many states have one one provider, NY included. I just did some googling and Oscar is the only provider in NY. I know we don’t want government to regulate (but they do regulate insurance), but I think they should mandate any insurance wanting to do business need to participate.
It will be a point of political contention as the bill is being considered as to whether the tax credit is refundable (meaning that it could result in a negative income tax if it exceeds one’s tax liability).
If I have a kid who is 28 and is unemployed and I am willing to pay for his health insurance, I would prefer the subsidy rather than tax credit to my 28 year old with no income.
That was anticipated, but it’s not in the bill. Trump says it will be in Phase 2 or Phase 3 of the plan, whatever and whenever that happens.
One difference is that small businesses will see the same advantages as larger companies in buying insurance. That’s great news for us and a lot of other small firms, who couldn’t use ACA plans. I looked up the statistic, and SIXTY PERCENT of employees in Maine are employed by small businesses.
And now maybe my son will be able to stay in the US longer than 30 days in any 365-day period - under ACA rules, he can’t, or he’ll have to pay the penalty for not having coverage.
My older daughter has an ACA plan in New York, and there seem to be several participating providers. I’m not saying that there aren’t areas with limited participation by health plans, but I don’t think New York is one of them. (A quick search for my daughter’s zip code brought up Fidelis, HealthFirst, MetroPlus, Emblem, and Affinity.)
I agree that a 30% penalty for buying health insurance “late” would probably not reduce the number of folks who are choosing not to buy insurance now because they are young and healthy and suspect it would need to be a higher number, like Medicare that permanently penalizes folks if they don’t buy Medicare at the 1st opportunity.
Those with moderate to lower incomes will be hurt. Regardless of whether the tax credit is refundable (slightly better) or not, folks with smaller take home pay won’t be able to afford healthcare while waiting around for a check at the end of the tax year.Also, $2-6K is very little subsidy for some folks given healthcare costs, which I highly doubt will go down as they were rising substantially prior to ACA.
Who will benefit? The wealthy and insurance companies.
Correction: Winners are young people IF AND ONLY IF they are healthy.
I am 26 with a variety of autoimmune disorders. Trust me when I say that I lose out big league on this plan.
I am fortunate that I have a plan until I graduate from my PhD program. After that, who knows? Of course, I will graduate around 2021ish when this plan goes into full effect. I can only hope it never does.
Well, I think my information is actually correct. After I put in coverage for 1 person, silver plan and a midtown zipcode, only 2 plans came up, Metroplus and Affinity Health Plan.
That’s great news for us and a lot of other small firms, who couldn’t use ACA plans. I looked up the statistic, and SIXTY PERCENT of employees in Maine are employed by small businesses.