Trumpcare AHCA vs Obamacare ACA and how it relates to Health

Trumpcare (AHCA) vs. Obamacare (ACA) and how it relates to Health care finance 4 page paper 30 resources apa format

Solution

Obamacare, also known as the Affordable Care Act (ACA), was passed in 2010 as a health care insurance plan for all Americans. The law made many changes to the existing minimum coverage in insurance, and increase the federal subsidies for the middle-income households of the country. Trumpcare, also known as the American Health Care Act (AHCA), is a replacement health insurance plan designed to partly repeal the existing ACA. The new healthcare bill, is one step closer to repealing .

Here is a detailed difference between Mr Trump’s healthcare plan and Barack Obama’s plan

Number of uninsured people

ACA: The nonpartisan Congressional Budget Office (CBO) has an estimate with ACA as the law of the land, the uninsured Americans would be 28 million will remain stable for the next decade.

AHCA: The analysis of an earlier version of the bill, there is an estimate of   54 million could be uninsured by 2026 in case of implementation of the AHCA.  

Individual Mandate:

The ACA have provision to impose penalty on consumers who can afford to buy health insurance but do not do so, known as the individual mandate payment. it’s paid when you file your federal tax return. This penalty can be either 2.5% of   income up to the total yearly premium or $695 per person up to $2,085, whichever is higher.

AHCA eliminates the individual mandate and offers a incentive to consumers who maintain insurance coverage: insurance companies can charge a 30% penalty who buy health insurance after had a gap in required coverage exceeding 63 days. The 30% penalty would apply for 12 months.

Qualified Health Plans

The ACA requires that all major health policies sold to consumers offer coverage for 10 categories of essential health benefits:

The AHCA eliminates these protections by giving a waiver to define what they consider essential health benefits. States could allow insurance companies to sell plans that do not cover prescription drugs or maternity care.

Insurance Coverage of Newborns

The ACA and AHCA have the same rules for newborns. A baby can be added to family existing health insurance plan or can buy a new plan to give cover the baby.

Cost Differences

AHCA is making major changes in the health insurance by reducing the requirements and making change in the structure of total offered government subsidies. On the analysis, the CBO has reported the current changes would make health insurance more affordable for few customers.

Taxes

Obamacare: The ACA increased Medicare taxes for the households having incomes above $250,000. The legislation gave some tax credits to middle-income earners to help them pay out-of-pocket health expenses.

Trumpcare: The AHCA repeals taxes of previous insurance plan.

References:

1. https://www.firstquotehealth.com/health-insurance-news/trumpcare-vs-obamacare

2.https://www.independent.co.uk/news/world/americas/us-politics/trumpcare-obamacare-comparison-insurance-costs-premiums-deductibles-mandates-a7718771.html

3. “Under GOP draft of Obamacare repeal plan, a lot of people could lose coverage” By Tami Luhby, CNN, (February 25, 2017), http://money.cnn.com/2017/02/25/news/economy/obamacarerepeal-gop/index.html (Accessed 3/31/2017).

4. “3 reasons Rand Paul calls GOP repeal plan ‘Obamacare Lite’” By Tami Luhby, CNN, (March 4, 2017), http://www.cnn.com/2017/03/04/politics/obamacare-lite-randpaul/ (Accessed 3/31/2017) 4 Essential Health Benefits are ten healthcare items required by all insurance coverages under the ACA.

5 “White House moves to tweak health care bill to win over conservatives” By Josh Dawsey and Jennifer Haberkorn, Politico, (March 22, 2017), http://www.politico.com/story/2017/03/white-house-health-carebill-tweaks-236385?lo=ap_a1