Pros and Cons of Trumpcare – American Health Care Act (AHCA)
Like it or not, the leadership of Barack Obama has ended and now the United States is led by a new president, Donald Trump, the winner of the American presidential election that was held a few months ago. Obviously, the policies announced by the new US president are definitely different from the policies of the previous president, especially in terms of health care. The USA had Obamacare when Obama was leading, but now Obamacare is being replaced by TrumpCare. The American Health Care Act (AHCA), which has a name to match the new leader of this superpower country, is supported by Paul Ryan, who is currently Speaker of the United States House of Representatives. Both Obamacare and Trumpcare have their pros and cons. While this new health care policy is still in the very initial stages, through this brief article, we would briefly list the pros and cons of Trumpcare, as the GOP replacement for Obamacare.
Pros of Trumpcare
- Some of the bills are still taken from the earlier president’s provision. However, not all of the provisions are adopted by Trump. It only takes the essential health benefits. So, Trumpcare does not remove the previous good provisions and they still use some of the Obamacare provisions, but not much.
- Helping all of the people according to class level, especially those in the middle class because it will give significant help to anyone that was not yet covered.
- Trumpcare will begin to get rid of some Medicaid funding and it may give Democrats the chance to expand their government.
- There is no longer a fee needed for those who do not have insurance. In fact, Trumpcare will still keep the mandate, only removing the fee.
- Trumpcare allows insurance services to provide insurance across state lines by reducing the plans’ costs, despite the fact that it may cause less protection to the users.
- Trumpcare is a fresh health care service with some interesting plans, such as giving permission to the insurance companies to sell over state lines, blocking Medicaid grants, making a sick pool, and decreasing healthcare litigation. But, the people may think that those policies are bad if the Trump government does not conduct things properly, or the people may disagree if it causes the poor and sick to starve and suffer because they do not get funds in time.
- Trumpcare is really beneficial for large company owners and the bill will try to reduce the tax burden for those business owners. But, for the small employers, there is no regulation change.
Cons of Trumpcare
- Trumpcare is known to make poor people suffer more, only making big employers and rich people happy. There are still many sick and poor people in the country that need help, but Trumpcare is not on their side.
- The consumers will pay 30% more for one year, just in case they have a lapse in coverage for more than two months. In this case, those who cannot pay for healthcare services will get an additional cost barrier. We do not know whether it is better than the mandate, or if it will be even worse.
- Since Trumpcare does not really belong to universal coverage, the people who do not get covered by insurance will rise up as time goes on.
- Healthy people may not be incentivized to join the market and most of them, apparently, get covered by Medicare and work, while a lot of young people need to wait so that they can get coverage.
- The employer mandate is removed by the Trumpcare bill. It may be a good thing for employees, or employers who had employer plans at a high cost, but it may be bad for those who depend on the coverage of their employer. In this case, it will become more of a burden on the state to provide help.
- It is really different from Obamacare, where Trumpcare is just an ideological plan implementation with some allowances. For instance, if you struggle with your out-of-pocket costs or are stuck in the Medicaid gap, then you will only have a few options, and there will be no more options for it. Perhaps Trump’s healthcare plan is cheaper healthcare, but there will still be some problems with the system.
- Age-based credit will replace tax credit, as well as there will no longer be medical expansion and pocket assistance.
- It is not enough to count on the bill to reduce state deficits unless the government makes deep cuts.
- The ideas are only taken from Paul Ryan and his crew, while others are ignored. This idea is coming totally from the current leader and no one can give an idea to what they have made.
Affordable Care Act – Obamacare
The official name for “Obamacare” is the Patient Protection and Affordable Care Act (PPACA), or Affordable Care Act (ACA). The main objective of this policy was to improve the standards of health services and make it more affordable for everyone. Additionally, the policy aimed at reduction of the health care expenditures of the county. This policy increased the prospects of health insurances for many Americans who were initially deprived of it.
Lack of Insurance
As announced by Trump, a new health policy will be initiated. The repeal of the old policy will leave 18 million people in the country uninsured in the first year alone. According to estimates, 32 million Americans will lose their insurance after the repeal, creating a number of health problems and increased expenditures of the citizens.
The repealing of Obamacare, instead of just changing a few aspects for further improvement, will result in premiums increasing to almost double the current amount.
Up until now, no alternatives have been thought up by the Republicans. Although it is being claimed that the repeal will be followed by a step-by-step introduction of a better healthcare policy, no practical steps have been taken so far. The budgetary implications of the “possible health care bills” are yet to be seen to finalize the health policy of the Trump government.
No chances of Improvement
A tentative bill, which is under consideration to be implemented as the health policy for the country, is not intended to improve the system over time. In the bill, there are no penalties set for the non-insurers, which will increase the risks and expenditures of the health care industry, resulting in the deterioration of the entire system.
Change in the Insurance Mix
The “no penalty provision” will also change the insurance mix, creating economic problems for the country because younger individuals will prefer going without insurance, but the older ones will want to avail themselves of it, so the current mix of the health insurance industry will become uneven, affecting the economic conditions of the country and increasing the risk of a default by the insurance industry.
Trickle Down Effect
Research shows that the elimination of 32 million people from the health insurance net will result in three major changes. First, the insurance coverage in the individual market will result in no insurance for 23 million people. Second, Medicaid will cover 19 million fewer people. Third, an increase in the employment-based insurance will be expected, which is a somewhat positive aspect of the policy, but the overall negative impact will not be overruled.
Single Payer Health Care System
In the single payer system, the government is supposed to contribute towards the health of the individuals of the country if they get ill, as the provision of health is amongst the basic necessities of the people. In order to achieve this objective, the government can take a number of steps, which might include laws related to compulsory health insurance or the deduction of health taxes at the source to accommodate the health problems of all individuals.
Bad Governance of the Progressive governments
However, the bad governance of the progressive governments of the United States of America have not resulted in the implementation of this dream policy. Obamacare, or the health policy of the Democrats, was not much good, which could have been assumed to provide ease to the health problems or health insurance of all the people of the country. However, the repealing of this policy and the implementation of the Trump policy, based on many assumptions, will put the country in an even worse situation. The damages estimated to the health insurance industry, the health of the people, and the costs associated with them are expected to increase even further.
Dream of Proper health Care stays a dream
Thus, an overlook of the health care priorities and the policies of the government show that the government of the United States (irrespective of party) is not very serious about a single payer health policy or actual universal coverage. Rather, both parties are just fighting to show that they are doing something good for the people, but none of them have been successful in making a foolproof policy. However, the people of the United States have been regarded as the losers of the situation.
Trumpcare, the American Health Care Act (AHCA), and Obamacare are two different healthcare services that have their own benefits. When Barack Obama led the USA, Obamacare offered a lot of benefits with some pros and cons. Each healthcare policy must have pros and cons. As they are also found in Trump’s healthcare plan, where there are some good things that the people will get and there are some cons that the people may disagree with. For those who live in the USA, they need to follow the policies of Trump and Paul Ryan because they will lead the country for another 3-7 years, and they need to be patient and take the benefits of Trumpcare, which were just implemented by the new government. Perhaps, you only need to wait for a few years. There may be some improvements done by the Trump government.