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Trump's Plan to Replace Obamacare
There may be some excellent ideas and policy in Trump's universal medical care for the USA, but as of now, I am not sure what they are. What we do know is that Trump will shove it down all Americans. He is keeping some aspects of Obamacare. Good to see some common sense in his brain cells. But, whether the Republican plan will be better is anyone's guess.
I have a problem with the tax credits replacing the direct subsidy. I have a problem with the vague term "access". With Obamacare, a person earning only $20,000 a year can received full coverage in California for $1. This care is via Kaiser The subsidy is $700. So, instead of the person paying this, the government does. Of course, if they earned $45,000, the subsidy would be only $350 or so. But this is directly and immediately felt. If this was a tax credit, exactly how would this work? Tax credits are usually given once a year for tax returns. Is Trump saying that this same person would have to pay the full amount and then at the end of the year be reimbursed with a tax credit? If this is the plan, it is a BAD plan.
If a tax credit is really a different name for subsidy, well, that is fine. But, having a tax credit at the end of the year for medical expenses is very bad. That would mean the person earing just $20,000, would have to pay $700 a month for the care! That is not making their lives any better but worse!
As for access. This is a bogus term really. Having access to healthcare is not the same as having affordable healthcare. Today, with Obamacare, everyone has access to healthcare. Those who refuse can pay the $700 fine at the end of the year. Trump's plan will not provide healthcare any better than the existing one, both allow one to access but will Trump's be any better? Trump's spin on this word seems to be access is healthcare, which is nonsensical. It is just the ability to get it.
Of course, I do like not having to be forced in getting healthcare, it should be MY choice, not someone saying I must or else. I think removing the restrictions about healthcare coverage across state lines is great. Right now, if you get Obamacare in California, it is no good in another state. The healthcare coverage you get MUST be portable across all state lines. Why should one have to sign up again if you move to another state? I really do not think that anyone earning over $150K a year should get any breaks with healthcare. They should pay whatever the market is and not get tax credits.
Not everyone is unhappy with Obamacare. It depends on which state you are in and your income level. In certain states, it is a disaster because the insurance companies "opt" out of providing coverage. I think that is a loophole. These companies should NOT be allowed to opt out if they find it difficult, if they do, they should be penalized a hefty amount because millions depend on them to provide coverage. Right now, they can do so with nothing happening to them! That is why in certain states this has happened, the rates are skyrocketed because only a few insurance companies remain. In states where it is a success, it is a good thing. Many have healthcare that had none before and those who earn a decent living, pay a modest amount per month.
Whether Trump's national healthcare plan will be any better than Obamacare is the big question mark. The transition of it and stopping Obamacare will have to be carefully orchestrated, otherwise, it will be a disaster. So far, Trump has shown his team cannot do this very well.