Millions of Americans may be affected if the Republicans bill to get rid of Obamacare becomes law. Employers, Individuals and the medical market may shift if the bill goes through. Today we are looking at the GOP Health Insurance Bill and what that means for you..
A few weeks ago the Congressional Budget Office revealed the review of the Health Care Act. The review divulged that 24 million less people would have insurance by the year 2026. Along with this announcement, the agency also gave citizens some insight into the changed that may be happening.
The statistics show that around 7 million less people will be receiving job-based health insurance (CBO prediction). Company workers would now not feel like it is necessary to sign the coverage because they will not get a penalty. With this being said, less companies will be offering health-care because they will not be receiving a penalty.
By dropping health insurance, companies will able to spend their money on increasing wages and other types of compensation. In the past, CBO has slightly overestimated how the changes to citizens would effect the employment-based healthcare coverage. The agency also predicted that more businesses would drop healthcare once more alternatives to Obamacare became available, which they did not.
Younger People Receive Cheaper Plans
The review shows that younger people would get a cheaper plan due to a decrease in premiums.
As of now, the older Americans are subsidised by the younger ones. This is due to legislations that insurance companies can only charge older people who enrol three times as much. Although, the GOP would allow insurance companies to charge older people five times as much as young people. Causing people ages from 50 – 60 to pay more. People in their 20’s would be paying less. Most Americans older than 60 are on Medicare.
Middle Class Citizens Would Get Federal-Aid
People who have a higher income and are “middle-class” would be receiving help with paying for their coverage in individual markets.
Obamacare states that families earning $47,500 do not qualify for subsidiaries and neither do families with four incomes over $97,200. This is the reason why many Americans complain that the Affordable Care Act is unaffordable.
When it comes to tax credits, the American Health Care Act would be providing credits from $2,000 to $4,000. The amount of credit depends on age.
If a person makes over $75,000 and families earning over $150,000 will be eligible for the full tax credit. Individuals earning more than $215,000 would no longer be eligible for tax credits and this is the same for families with over $290,000 income.
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