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The first day of the Trump presidency turned out to be an eventful day. He took time out of the busy day to take action against the Affordable Care Act, otherwise known as Obamacare. This was not really a surprise to anyone as he promised to do this as soon as he could. Trump signed an executive order which was meant to “minimize the economic burden of the Affordable Care Act pending repeal.” The executive action didn’t actually repeal Obamacare, but there is a good chance it will weaken it. So, how will Obamacare change?
After the executive order was signed, there are three things that will probably immediately affect your coverage.
- Your Insurance Coverage
- Healthcare Fine
How Will Obamacare Change After The Executive Order
The healthcare fine is what you have to pay if you are not enrolled in any health care at all. At the time of writing this, you should still be covered and you should still have subsidies for your plan, which make your health care easier to afford. The fine that you are charged for not having healthcare will most likely go away.
In a nutshell, Trump wants HHR or the Health and Human Resources department to “waive, defer, grant exemptions from or delay parts of the law that puts a financial burden on the states, individuals or healthcare providers.” He wants to get rid of the part of the healthcare program where individuals pay for not having health care.
The Obama administration had several reasons why a person could be exempt from having to pay the so-called tax penalty. For example, if you were a victim of domestic abuse or if you are homeless you would most likely not pay any more taxes for not having the appropriate health care. The Trump administration believes the Health and Human Resources department should “interpret” these parts of the Affordable Care Act “loosely” and exempt even more uninsured individuals from paying a penalty.
If the Trump administration is successful in repealing Obamacare or the Affordable Care Act and doesn’t replace the subsidies put in place by the Obama administration to help cover your premiums you will see a higher healthcare bill. For example, if your premium is $400 and you are only paying $100 for Obamacare, you will most likely be paying $400 all over again.
Your insurance contract is effective through the end of the year, so you don’t have to worry about immediately losing coverage because of the Trump executive action.
Most insurance experts agree that as of right now, we must wait and see. The best advice is to do business the way they are already set up, because there are no other alternatives.
It is widely known that your insurance policy is a contract. You have signed this contract through your provider and it will be effective through December 31st of 2017. So even with an executive order, there is not much Trump can do to change what you already have.
It took the Obama administration over 5 years to get the Affordable Care Act polished out and set up for millions to use. Repealing it can be done quickly. However, actually replacing it is going to be a difficult challenge.