Healthcare premiums are expected to go to the roof, and fewer Americans will afford it. All this is as a result of the latest moves and decisions taken by President Donald Trump and his administration. A report by one of the non-partisan think tanks known as Urban Institute came up with several suggestions after analyzing the elimination of the individual mandate by the Republican-sponsored tax bill. The GOP tax reform legislation gives a requirement to American citizens under it, maintain the healthcare coverage or pay the penalty. The White House also passed a resolution that would allow some of the insurance consumers to pay for more affordable short-term insurance plans for a period of up to 12 months.
Most of these healthcare plans endorsed by the Trump administration, provide limited coverage and can cause a rejection by insurance companies as compared to ObamaCare incentives. President Trump has said that programs that will run for the short-term will offer an affordable alternative to premium recipients who have been edged out by the Affordable Care Act. According to the report that was released last week by the Urban Institute, the combined effect will lead to an increase the cost for insurance plans that are compliant with ObamaCare plan.
However, critics have also argued that they will also encourage American citizens to purchase inadequate insurance policies which would, in turn, raise the premiums for those Americans who need comprehensive care. The 43 states that do not have limitations on the short-term plans will experience an 18.2% increase in the number of people under ObamaCare by the end of 2019. The survey also estimates that, without the individual mandate, 6.4 million more people will not have access to healthcare coverage by the end of 2019. Moreover, it is expected that, by the end of 2019, there will be 2.5 million people with insurance plans that do not have the minimum essential coverage offered by the Affordable Care Act.
Despite the fact that fewer people will be accessing health coverage from the federal government, the health budget is expected to increase by more than $33 billion. The main reason behind the increase in federal spending is that subsidies will have to be increased to match the high value of premiums. The agency that has been charged with the responsibility of passing laws regarding healthcare known as the Congressional Budget Office has made some estimations. By 2019, the number of people who will have access to healthcare coverage will reduce by 4 million.