The internet is flowing with rumors about the differences between the Affordable Care Act (ACA/Obamacare) and the American Health Care Act (AHCA/Ryancare/Trumpcare). Unfortunately, in today’s technological era you can’t believe everything you read. Some of it is mere guessing, and some is pure opinion. Do you know the facts?
Affordable Care Act
- Individual Mandate – People who can afford health care but do not purchase a plan will face a tax penalty.
- Coverage Mandate – Insurers are required to cover certain needs such as maternity care, prescription drugs, and mental health.
- Purchasing Power – Those who buy through HealthCare.Gov receive a tax benefit. Only truly helps the lower class.
- Deductibles – Those in the lower/middle class who purchase a silver plan will receive subsidies.
- Preexisting Conditions – Forbids insurers from either turning people down or charging more for those with preexisting conditions.
- Age Discrimination – Insurers can charge older adults up to three times more than younger adults to keep up with health needs.
- Medicaid – States who comply with the Medicaid expansion get matched federal funding regardless of the amount.
- Health Taxes – Insurers, medical manufacturers, and wealthy citizens pay more in health care taxes.
American Health Care Act
- Individual Mandate –Those who don’t have a plan will face a 30% premium increase for a year when they do purchase it.
- Coverage Mandate – States have control and have the option to scale back on what insurers must cover (doesn’t mean they will).
- Purchasing Power – Tax benefits based more on age than income; designed to help the middle class and lower class.
- Deductibles – Replaces subsidies with the ability to have bigger health savings accounts.
- Preexisting Conditions – States can use federal funds to help cover those with preexisting conditions so insurers have less risk.
- Age Discrimination – Insurers can charge older adults up to five times more than younger adults to keep up with health needs.
- Medicaid – Instead of matching state funding, the federal government will give each state a fixed amount.
- Health Taxes – Health taxes will be more equalized, eliminating about $600 million in taxes over the next ten years.