Trumpcare vs. Obamacare:
What are the differences and what can we expect?
Since Donald Trump was elected into office in early November, many Americans who rely on the Affordable Care Act (ACA, or Obamacare) to get insured started to ask the same question: what will the health insurance system look like under Trump's administration?
While it's still too early to know for sure what will and will not change about Obamacare, here is a summary of what Trump has proposed.
|Every American must be insured or pay a tax penalty.||No person should be required to buy insurance unless he or she wants to.|
|Health insurance plans are sold on a state-by-state basis, meaning plans you can buy in California you may not be able to buy in Nevada, etc.||Health insurance plans can be sold in any state, as long as the plan complies with state requirements.|
|Only businesses can deduct payments for health insurance premiums for their employees from their tax returns. Lower-income individuals who qualify receive tax credits.||All Americans can deduct health insurance premiums from their tax returns, instead of the government issuing tax credits.|
|No mandate on a Health Savings Account option.||All Americans can contribute to a tax-free Health Savings Account to be used toward deductibles and other medical expenses.|
|No mandate on transparency of health care costs from providers.||Providers are required to be transparent about health care costs so individuals can shop around.|
|Medicaid payouts are primarily controlled by the federal government.||Medicaid payouts would be at the discretion of each state, instead of the federal government.|
|Insurance companies cannot discriminate against individuals who have pre-existing conditions.||Insurance companies cannot discriminate against individuals who have pre-existing conditions.|
Recently, Trump announced that Tom Price, the current Chairman of the House Budget Committee, will be the new secretary of Health and Human Services. While it is difficult to say what will actually become law, his views on Obamacare and changes to the ACA are like what Trump has outlined, but differ in these main two ways:
- Supports age-adjusted tax credits instead of making premiums tax-deductible
- Supports offering grants to states to subsidize insurance for high-risk populations
We will update this page accordingly as new facts about Trumpcare emerge.