Somehow, I don’t think Donald Trump or Republicans care about the financial impact of their planned Obamacare repeal. To them, the politics of repeal play better. It gives them something to brag about when they go back home to their constituents.
But there are consequences to repealing the law, and hospitals have issued a warning.
The nation’s hospital industry warned President-elect Donald Trump and congressional leaders on Tuesday that repealing the Affordable Care Act could cost hospitals $165 billion by the middle of the next decade and trigger “an unprecedented public health crisis.”
The two main trade groups for U.S. hospitals dispatched a letter to the incoming president and Capitol Hill’s top four leaders, saying that the government should help hospitals avoid massive financial losses if the law is rescinded in a way that causes a surge of uninsured patients.
The letter, along with a consultant’s study estimating the financial impact of undoing the Affordable Care Act, makes hospitals the first sector of the health-care industry to speak out publicly to try to protect itself from a sharp reversal in health policy that Trump is promising and congressional Republicans have long favored.
1… Contrary to what 42 percent of Americans think, Obamacare really is happening. In fact, people can start signing up for state-run health insurance on October 1st. That’s when states and the federal government will open marketplaces, called exchanges, to offer subsidized benefits to the nation’s 50 million uninsured.
2… Another survey found that a majority of Americans think the law cuts Medicare benefits and covers undocumented immigrants. It doesn’t.
Actually, the government expects the average Medicare recipient to save approximately $35,000 over the next ten years.
3… Tax credits. Next year, health insurance for eligible individuals or families will be subsidized.
For example, someone making just under $23,000 a year wouldn’t have to spend more than 6.3 percent of their annual income on health insurance. Based on a $3,030 plan, their contribution would be $1,450. Under Obamacare, they’d receive a tax credit of $1,580 to put towards their coverage.
4… The 80/20 rule. Insurers are now required to spend at least 80 percent of premium dollars on providing healthcare. The other 20 percent can be used on overhead expenses like excessive administrative costs and profits. In 2012, this provision saved Americans over two billion dollars.
If insurers don’t comply, they’re required to provide customers with a rebate. In 2011, over 13 million consumers received $1.1 billion in rebates – that’s around $150 per customer.
5… taxes. No matter what you’ve heard, your health benefits under Obamacare will not be taxed. The law does require that employers report the value of your annual coverage on your W-2, but the government says that’s just for workers’ information.