March 06th, 2017

HEALTHCARE REFORM REFORM? TRUMPCARE?
​People ask me everyday… “What’s going to happen with Obamacare?” “How will Trump’s plan impact my healthcare costs?” The GOP has been hard at work crafting a bill to repeal, replace, repair, and rename Obamacare. Nothing has been "officially" released, but there have been enough "leaked" official documents to assemble a list.

Here’s a summary of KEY COMPONENTS likely to be included:

• INDIVIDUAL MANDATE REPEAL

• EMPLOYER MANDATE REPEAL

• MEDICAID EXPANSION ROLLBACK: Reduction of federal budget commitment. Block grant type programs may allow states to administer Medicaid locally.

• BENEFIT MANDATE REPEAL / INTERSTATE INSURANCE SALES: These would open the door for less expensive plans with lower benefit levels.

• PRE-EXISTING CONDITIONS: Some form of “guaranteed issue” insurance will likely remain for those with preexisting conditions. It may, however, cost more and be in a separate rating pool. Some drafts have included a 2 year transition period for all people with preexisting conditions to get coverage.

• COVERAGE LAPSE: Individuals who let coverage lapse may pay 30% higher rates for their first year being insured again.

• INDIVIDUAL TAX CREDITS/SUBSIDIES: Replace income-based subsidies with age-based tax credits.

• CADILLAC TAX FOR 2020: Replace 40% penalty on plans above $10,200 individual/$27,500 family annual premium threshold with limits on tax deductibility of employer sponsored plan premium at similar premium thresholds.

• HSA ACCOUNTS EXPANSION: Expansion of thresholds to encourage pre-tax deductions for health savings accounts.

Stay tuned. The GOP is expected to officially release plan details by April.