The Americans Health Care Act is a bill by the republicans who want to replace the Affordable Care Act famously known as the Obamacare. The initiatives under president Trumps government were put into effect days after trump was sworn in. The bill put forward amendments that would be made on the Obamacare act. The enactment of the bill would be expected to roll back funding that was given to low income families during president Obamas time. Furthermore, the bill would ensure that taxes that were as a result of the previous act would be rolled back. The Americans Health Care Act came to be as a result of repeals that existed on the Obamacare. Through dismantling the Affordable Care Act, the changes that would be made in funding’s and taxation would affect the economy in America. Middle income earners who purchased their own insurances will be affected together with the low income houses which were covered under the Affordable Care Act. Tax cuts and funding would also be seen to have economic implications. This paper aims at looking at the Americans care act conclusively and assess the impacts it has on my organization.
To begin with in as much as the Americans Health Care Act is seen as a remedy to the inadequacies that came with the Affordable Care Act, with it also comes a negative side. The transfer of funding’s will affect the low income earners since they would be expected to give out billions of dollars to the high income earners through tax cuts. Economically, this move will contradict the acts agenda of helping to equalize the tax treatment since it will be undermining the low income earners. Subsequently through enabling states in the management of Medicaid programs, the bill only creates more room for lees to be done. States will eventually start providing services that are inefficient to its citizens. With health care becoming unaffordable nowadays, the bill fails to address this. The increasing cost in health care services is not adequately represented in the bill. The Americans Health Care Act majorly focuses on tax cuts and the rolling back of funds to high income earners. With dependency of coverage from employers becoming unavailable, most children in America had been covered by Medicaid especially those from low income earning families. The Americans Health Care Act is in a way seen as a bill that will bring financial burdens to a number of Americans (Weiner, 2017).
Additionally, the Americans Health Care Act is estimated to instigate loss of jobs up to 2.7 million by 2025 (Newkirk, 2017). The act will eventually lead to a considerable number of health care providers and workers losing their jobs. Economic effects on activities especially in states that had initiated the Affordable Care Act to low income earner will be experienced. Furthermore, through the intended tax cuts by the bill, would ultimately stimulate job losses by Americans. Gross domestic products would also be affected with an estimated 10.5 billion dollars in decrease expected (Newkirk, 2017). To add on this, business output losses will occur in every state. Most importantly, the inception of the act would without a doubt affect those who were covered under the affordable care act would lose coverage. The health industry would eventually loose patients are a result of this bill.
Another fault that can be noted in the American health care act is the fact that it invests more on federal government money as opposed to how the Affordable Care Act was run. In return fewer people will be insured and the tax cuts that are on small business owners would not amount to much good. The financial impact of the bill on the federal government is huge. This will also be accounted on the fact that the bill provided less time for either business owners, insurers and health care providers to be prepared, especially when it comes to cost estimate. Also the speed at with the bill is replacing the Affordable Care Act limits the space for it to be sufficiently vetted. A large need for its inclusion is mostly based on political views rather than the welfare of American citizen. Also, the bill will eventually affect business in most states. As a health insurer company, the bill will directly affect our industry since most of us had registered quite a number of Americans under the mandate of the Affordable Care Act. This will come as a result of most individuals giving up insurance coverage.
Insurance companies will not be left behind on the effects that come with the Americans Health Care Act. According to Mark Pauly, a professor of health care management, a collapse in many states of exchange should as a result of insurer pulling out should be anticipated. A number of insurance companies had gained from the Obamacare act through the millions of Americans who registered for insurance cover. Through the Affordable Care Act it was mandatory for all Americans to be entitled to insurance cover. Employers who had over 50 workers had to ensure that all their employees had coverage. Also, the covers catered for abortions and health problems that had been previously evaded by health insurance providers. Such policies ensured that not only were low income earners insured, but cover was provided on fatal ailments. With the inception of the act by the Republicans, most of these will change. Health insurers will go back to covering those who can afford. Despite this, quite a number will be affected because with the increase in purchase, demand will decrease and the supply of health care insurance will be affected. Ultimately, the Americans Health Care Act will be seen to have economic implications on insurance cover.
One of the solutions that is provided with the act will trade the employer and individual mandate for continuous coverage. The Obamacare act required that if one did not have insurance cover they were to be punished with a tax penalty. The American health care act would do away with this. Furthermore, the act would do away with the issue that employers who had at least 50 workers were expected to provide for them with insurance cover (luhby, 2017). Rather the Americans Health Care Act sees to it that employers are not bounded with this policy. On the issue of insurance, penalties that were inflicted on companies that did not give its staffers affordable insurance were also removed. In addition states could allow insurers to charge consumers depending on their health status with regard to those who had a gap in coverage.
Another solution can be seen through the act under president Trumps administration is eliminating the Affordable Care Act taxes. This is especially on the law that was taxing the wealthy households with $200,000 and above income earners (luhby, 2017). Furthermore, taxes were eliminated on insurance companies like ours, on prescription drug makers together with on companies that manufactured health devices. The issue on age would be addressed. Under the new act older individuals could be charged up to about five times that of younger ones. This is contrary to the Obamacare which charged three times the amount of the younger ones. This move would loosen the age band and allow insurers to charge older individuals more. Also under the new act, Medicaid would be overhauled. This would make way for federal funding to be used for adults and children who were covered by the program. This would bring with it the condition that they states would now be in charge of such programs. The federal government would distribute similar amounts to all states without considering the number of individuals being covered. The aim of all these is to cut the spending of the federal government on Medicaid.
The replacement of the affordable health care act subsidies with refundable tax credits is also perceived as a solution. The new plan would remove these subsidies that existed on the basis of the income that one earned. This policy allowed for individuals who earned less income to receive subsidies on their insurance coverage. The new act on the other hand aims at issuing refundable tax that in return enable individuals to afford health insurance coverage at an individual level. Also, in so doing the act will prioritize age when deciding such. The credits would be higher on those in the age group of 50 and above and less among individuals at a younger age. Additionally, the extra financial assistance that was given to individuals who earned less than $30,000 annually would be stopped (luhby, 2017).
By the House of Representatives passing this bill the Affordable Care Act would be repealed and replaced. Changes that were made to the legislation were enough to convince conservatives to be able to support the bill. With the bill now headed to the senate, a considerable amount of revisions would be proposed and made. The sole aim of the act is to the republicans agenda of repealing the Obamacare act. This health reform law had seen to it that all Americans were insured, on the other hand the republicans aim at seeing that the Americans get returns on their taxes rather than them being channeled to a health insurance policy that mandates coverage for everyone. The economic pains that come with the new act will be mainly felt by low income earners, business people and insurers.
In conclusion, the Americans Health Care Act that is seen to aim at replacing the Obamacare act has its challenges. It is not easy to replace such a policy without hurting the economy. The amount of job losses that come with it are huge to the point that a good number of Americans will suffer. Furthermore, rolling up taxes and funds will only hurt low income earners and favor the rich. In the end insurance companies and states will go back to concentrating more on their own interests rather than the health insurance coverage that is currently unaffordable to most Americans. Most importantly, a huge number of citizens would have to revoke the insurances and go back to having no covers. This is the most significant part that will be as a result of the inclusion of the Americans Health Care Act. Despite all these, the solutions that come with the new act aim at reducing federal government spending on health care initiatives. This is especially due to the amount of funding that was being given to Medicaid and the likes. The government under president Trump aims at providing more generous health accounts to its citizens. In the end it is only logic that the Americans Health Care Act will have its share of advantages and disadvantages, just like other policies that came before it.