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It has been known for quite some time that President Trump does not favor ObamaCare, and this week he is already making efforts to make major changes to the plan. One of the sticking points for many Americans is the fact they are going to be penalized this year if they did not have insurance coverage in 2016. That $695 mandate may be history as Trump eliminates key feature of Obamacare. This was one of three orders the new president enacted in his first days in office.
To better clarify the mandate, the Affordable Care Act had a stipulation that every American must sign on for insurance or face fines each year they go without. The fine for this year was $695 per family member, a huge amount of money for people to pay who could not afford the coverage to begin with. Trump decides to lighten the burden of these folks by taking action to repeal the mandate. While the ripple effects could mark the end for the Affordable Care Act, it appears Trump is more concerned right now with lightening the load for those who are in the worst financial situation.
When a person can not afford healthcare, it makes no sense they must be penalized financially so others can have coverage. Trump has not been shy about his feelings for the Affordable Care Act, citing numerous times that many of the legislators who signed the bill had zero idea what they were signing, so how could the public even understand? Trump appears to be making good on his promise to offer Americans an alternative to Obamacare, and repealing the mandate on no-coverage fines is a great way to start.
The other day, Trump signed the executive order that was instructing the HHS to grant exemptions from penalties associated with the Affordable Care Act. No doubt that people who would have been getting those bills this tax season are already rejoicing at the fact they are going to be able to keep some of the cash they thought the government was coming after. One thing is for sure, if the repeal stays in place, a new insurance program must be waiting in the wings or those who still have coverage are going to have to foot the mounting bills in 2018.
Anyone who has listened to Donald Trump along his long campaign trail will tell you how much he loathes the Affordable Care Act. In fact, one of his campaign promises way to eliminate Obamacare as soon as he took office. True to his word, days after taking the oath of the President of the United States, Trump uses executive order to repeal Obamacare mandate.
What exactly was the mandate and how did it affect everyday citizens. part of the biggest concern with the Affordable Care Act was that every able person in the country must sign up for the coverage. As the years past, if you had not already taken the time to get coverage, you were going to be penalized once a year, and that penalty would escalate year after year to encourage citizens to get that health coverage. This year, for a single filer without coverage, the penalty was nearly $700, and next year it would be even more.
True to his word, Trump wasted no time in helping those who need help the most. His explanation for signing the executive order to suspend the Affordable Care Act mandate was that if you can’t afford health insurance, how could you be expected to pay that much in a penalty? This executive order was signed only days after the swearing in, and to the relief of many who feel that they had no way to cover that fine except for it coming out of their tax return that they desperately need.
On the surface this appears to be something that will benefit a large majority, but there are going to be some consequences on the back end. What many experts fear will happen is that those who are now paying for Affordable Care coverage are going to be left holding the bag for those who are not contributing to a plan that was supposed to include all Americans. With a large portion now except from the mandate, the people paying will have to pay more, and it could be in the way of coverage increases of 25% or more.
Trump has assured people to wait to see what he has planned concerning a new health care system that will lighten the load on many and ensure anyone can enjoy coverage.
Obamacare is a political football as well as a nightmare for insurance companies. The healthcare system in the United States is a mess, and citizens are still trying to understand why it is a mess. Canada has an excellent government-funded healthcare program, and countries like Sweden, Denmark, Norway, and even the United Kingdom have healthcare systems that work for the people. In the United States, the healthcare system works for big businesses. President Obama made a promise that he would fix the U.S health care system while he was in office, and he came up with a plan that is affectionately known as “Obamacare.” Obamacare seemed to be dead on arrival, however. But Obama and his administration forced it back to life in order for him to say he did what he promised. Trump wants to repeal the plan, and just about every Republican on Capitol Hill agrees with him. Republicans agreeing with Trump is a rare event, but in the case of Obamacare, Trump is the lesser of two evils.
According to an article published by businessinsider.com, Aetna just announced that it would pull out of 70 percent of the counties where it offers Obamacare coverage. Aetna, one of the five largest health insurers in the country, said the $200 million loss every year was not worth handling Obamacare. Instead, Aetna will offer healthcare options through public exchanges in only 242 of the 778 counties where it does business. Those counties are in Nebraska, Delaware, Virginia and Iowa. The old plan offered coverage in 15 states. The bottom line is, insurance companies hate to lose money and the way Obamacare is structured they will continue to lose money. Obamacare is a risk pool that insurance companies don’t want or need. Most of the Obamacare patients are older, and that means more healthcare expense. Aetna and other insurance companies must have a more balanced consumer base. In other words, they want younger people that don’t need the medical attention that the baby boomers need.
The Aetna decision will have a big impact on people that were depending on Obamacare. Once again, the healthcare system in the U.S. is creating more health issues than solving them. Almost 1 million people had Aetna coverage in 2015, and now those people are left with no coverage.