Recently, President Donald Trump passed the American Health Care Act that will serve as a substitute for the Affordable Care Act, known as Obamacare for short. Since these new health care system changes may be confusing to understand at first, we’ve decided to break down the key aspects of the American Health Care Act, nicknamed as Trumpcare.
The American Health Care Act ’s Effect on Health Savings Accounts
Obamacare imposed limits on the amount of money that could be saved in a health savings account. Under Trumpcare, Americans will have the right to double the amount of money they can contribute to a health savings account. In addition, they will no longer have to purchase insurance and employers will not be obligated to insure their employees.
American Health Care Act ’s Health Insurance Penalty
Obamacare required individuals who did not have insurance to pay fines while requiring large corporations to provide coverage. Although, these fines are eliminated under The American Health Care Act, insurance companies will have the right to charge a 30% penalty to any individuals with a lapse in coverage of 63 days or more.
The American Health Care Act ’s Views on Insurance Companies
The American Health Care Act will give insurance companies more freedom to create their own prices. That being said, older patients could pay five times the amount that younger patients do. With Obamacare, this limit was set to three times the price.
The American Health Care Act ’s Minimal Tax Credit Changes
Obamacare mandates the government to pay tax credits to fund premiums, co-payments and deductibles. Although this remains the same under the American Health Care Act, there are less tax credits available for wealthier and younger individuals. These credits are also refundable and based on an individual’s age and income. Wealthy individuals in the country will not qualify for tax credits.
The American Health Care Act ’s Policy on Medicaid
Under Obamacare, over 30 states expanded Medicaid coverage by raising the eligibility requirements to 138 percent of the poverty level. While Trump is allowing this to continue until 2020, federal funding for those who become eligible in 2020 or leave Medicaid and return would drastically diminish.
The American Health Care Act ’s Cuts to Women’s Healthcare
Planned Parenthood is an organization which receives funding to provide women with health care such as cancer screenings, contraception, and abortions. Trumpcare will cut funding to this program.
Contact Fast Chart Today to Better Understand Health Care Changes
The health care changes under the new bill are likely to affect the way that you as a medical provider do business. If you’d like further information about these new health care changes, we encourage you contact Fast Chart today. We’ll be more than happy to explain how The American Health Care Act will affect your practice and educate you on how our services can help.