While the Republican proposal to replace Obamacare has yet to be scored by the Congressional Budget Office (CBO), a number of studies have been completed that estimate that as many as 10 million currently insured Americans will lose their insurance under the newly proposed American Health Care Act. This represents half of the 20 million who are now insured after implementation of the ACA.
Trumpcare (or Ryancare in some circles) replaces subsidies that made insurance much more affordable to poor and elderly Americans with flat tax credits that do not come near covering the cost of a health insurance plan. Further, the AHCA changes the “age tax” or “age rating” from 1:3 to 1:5. Under Obamacare, insurance companies were prohibited from charging older Americans more than three times what they charged younger Americans. The new ratio (1:5) means that insurance companies will almost certainly raise rates on those over 60. AARP Executive Vice President Nancy Leamond took a firm stand against the Obamacare replacement because it “would weaken Medicare, leaving the door open to a voucher program that shifts costs and risks to seniors.”
President Trump was crystal clear during the campaign and after the election: He would negotiate a better healthcare plan for all Americans that would be less expensive and cover more people. Until the CBO scores the legislation there is no clear sense of the financial cost. Early reports, however, indicate that the human cost starts with 10 million Americans losing their health insurance.
Donald Trump, in endorsing the AHCA, has broken his promise to the 10 million who will likely lose their insurance in the coming years.