By Dhara Patel, National News Writer
A few days ago, House Speaker Paul Ryan, along with fellow Republicans, released the new health care bill proposed by the new administration and members of Congress.
The Congressional Budget Office (CBO), a nonpartisan committee, found that by 2026, 24 million additional people might be without health care. Democrats have rallied against the proposal, and several Republicans have come to oppose it. According to projection, by 2018 up to fourteen million people could be without health care because of the new bill.
Though it may not save money for many people, it will lower federal spending, tax cuts, and deficits. Trump’s administration was quick to say that the CBO’s report was false. As soon as the bill was released, President Trump confirmed publically that the bill would be better than Affordable Care Act (ACA) for it will cover everyone.
There are clear indications of who will benefit from this plan and who will not. Paul Ryan claims that the new plan will lower premiums yet that is not the case when looking at age brackets.
For example, a 22-year old earning $26,500 has an insurance policy that costs $5,100. That person will receive a tax credit of $3,400 and thus will only pay a premium of $1,700. On the other hand, a 65-year old earning the same amount ($26,500), will have a health plan that will cost $19,500 as opposed to a $15,300 plan provided by the Affordable Care Act. That same person will receive a tax credit of only $4,900 from the new bill, making his or her premium $14,600. Under the current health care plan, that person would have received a tax credit of $13,600. This shows how older individuals will have a significantly higher premium under the current administration’s proposed plan.
The primary reason why the new health care plan appears to be laissez-faire is because this is what it aims for. The Republicans chose this to promote Americans to choose their own plans, thus allowing them to choose their own doctors and health care professionals. This suggests that the current employer-based healthcare insurance system, one which millions of Americans have become accustomed to, will be entirely revamped or replaced. If that is the case, smaller companies will experience a greater impact because they may not be able to afford providing for their employees, as a greater proportion of their expenses will be used for healthcare compensation.
The bill is currently awaiting approval by Congress, and many are hoping to get reforms on the new bill. Trump supported the bill by remarking that the “rates will go down, down, down, and you’ll see plans go up, up, up.”
A version of this article appeared in the Tuesday, March 21st print edition.
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