Update on the Affordable Care Act Under Trump Presidency

Dear Clients,

Trump is being inaugurated Jan 20, 2017, so until then we won't know the actual outcome of the proposed changes to the Affordable Care Act. It is often difficult to determine what the bottom line will be when it comes to political speak versus actual day-to-day reality.

Open Enrollment for 2017 ends on January 31st, so please make sure that if you want to change your plan that you make an appointment with us prior to January 31. Again, we will have to wait and see how the ACA is effected for 2017 until after the inauguration.

Here is what we do know so far based on the news and information going around and from Trump's website. Overall it seems that the basic pillars of the ACA are not being threatened. That covers things like:
1. There will not be discrimination for pre-existing medical conditions.
2. Children will still be able to stay on their parent’s plan until age 26.

Here is proposed what would change: 
1. Not be required to have health insurance
2. Be able to buy health insurance across state lines to increase market competition
3. Be allowed to deduct your health insurance premium
4. Be allowed to use Health Savings Accounts, which are tax-free and can accumulate and can be part of the estate without a penalty. 
5. Require price transparency from healthcare providers, especially doctors, clinics, and hospitals so consumers can shop for the best prices. 
6. Block-grant Medicaid to states. 
7. Remove barrier to entry for free market drugs to make more access to better prices and options. 
This information is from Trump's website here.

From Yahoo Finance: "The precise plans for its execution are unclear, however. Fully repealing Obamacare may be untenable given a narrow-enough majority that can’t override a Democratic filibuster, but President-elect Trump would have other means to dispatch his predecessor’s major project, by failing to fund it, tweaking it significantly, or weakening the law in other creative ways with the Republican Congress. As Georgetown professor of health policy Jack Hoadley told NPR, “They are probably, practically speaking, talking about leaving the ACA, as is, in place.
Details of the actual plan are scant. But under “Trumpcare,” you would purchase your healthcare on the open market, which would be opened up further, allowing insurance companies to sell plans across state lines. Trump has said this will increase competition, and the premiums would be completely tax deductible.

The main part of Trump’s vision is the use of health savings accounts, or HSAs. Essentially, you pay for your medical expenses with your savings—if you have them. According to the Trump platform, this is advantageous for young people who may not have many health expenses and can choose high-deductible healthcare. His plan would let consumers spend HSA money on family members and pass the funds onto children.

According to the CRFB analysis, dismantling Obamacare’s major features—whether this is an actual “repeal” or not—and implementing Trump’s plan would cost $550 billion, increasing the deficit in the long run. It would also only recover 5% of the 21 million that would lose their Obamacare insurance."

We will keep you updated as we find out more about how the election affects your coverage under the ACA.

Trump outlines how he would change healthcare on his own website here on these three pages:

https://www.donaldjtrump.com/positions/healthcare-reform
https://www.donaldjtrump.com/policies/health-care/
https://assets.donaldjtrump.com/HCReformPaper.pdf

Meanwhile, Open Enrollment is going strong. If you need to schedule an appointment, please get on our calendar by signing up here: http://www.twpfinancial.com/schedule.

Here’s to Your Health,

TWP Financial