The Health Insurance Issue Explained

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Should the repeal and replace of the Affordable Care Act go through, premiums for this health insurance are projected to rise by 20 percent. At the same time, the federal budget is expected to shoot by an approximated sum of $194 billion in the next 10 years. However, this will only happen if the threats by President Trump to cut some subsidies that usually go to the insurance companies are implemented. This information was released by the congressional budget office just. For starters, the subsidies that have been targeted by the president include out of pocket costs, co-payments and deductibles that people with low income incur when they visit the doctor. These costs are also incurred in case these people receive care in hospitals or whenever they go for fill prescriptions. President Trump began making threats that he would end these cost-sharing reductions long before the last ditch to repeal and replace the Affordable Care Act fell. According to the president, this is the only way of making the health care law implode thus leaving the Democrats with no option other than negotiate. President Trump believes that the health insurance issue in America can be solved by replacing the Obamacare and finding a solution later.

Despite these threats continuing, the Trump administration has continued paying these subsidies. Through the nonpartisan budget committee, the cost of the president’s threats have been quantified meaning that a lifeline has been handed to the Democrats. This way, the administration and Congress has no other option other than comply. The CBO outlines that should the administration fail to make these payments, low-income Americans will be forced to pay more for care that could have cost less. Chuck Schumer has, therefore, told the president that the ball is in his court and Americans are watching to see the next move that he takes. The budget office explicitly said that should the administration fail to make these payments, silver plans will be more expensive meaning that the government will even incur more as the government is also involved in helping Americans pay for these services. At the same time, some insurers would be left with no option other than withdrawing their services from this market. Their reason for withdrawal has been referred to as substantial uncertainty. What this means is that close to 5 percent of the American population would be left without health insurance. However, if the government keeps its promise and keeps paying, less than one percent will be left uncovered.

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Steven has over 10 years of experience in business management most of which has been on the PR front. Because of his flair for writing, Steven decided to bring together a team of like-minded individuals and founded Live Newspaper.

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