Tax Bill Passed Late December
In a tweet the day after Christmas, President Donald Trump announced that the Tax Cut Bill essentially repeals the Affordable Care Act (ACA) and forces Democrats and Republicans to collaborate to create new health law. The bill eliminates the ACA’s tax penalty for not having insurance, allowing low-risk individuals to leave the insurance market. Without low-risk individuals contributing to the pool, the remaining insurance buyers have higher costs, so premiums rise. As premiums rise for people who remain in the health insurance market, the government becomes increasingly responsible for subsidizing rising health care costs. The increased government coverage is similar to Medicaid under the ACA in many ways. However, while the ACA offered a mix of publically and privately funded health care, the default health care system after the tax bill shifts the funding away from the private market and gives the government an even larger role in subsidizing health care. LEARN MORE
The GOP inadvertently increased government spending and responsibility on health care relative to private spending. The enhanced role of federal subsidies makes the ACA more like a government-run health care system than ever before. To avoid increased involvement and costs, some Republicans hope to make changes to the health care system before the insurance mandate is eliminated in 2019. Given the numerous failures of the GOP to pass health care legislation, these changes may not be easy to pass. Either way, according to the CBO, the changes to health care in the tax bill will lead to 13 million fewer Americans with health insurance in 10 years.
- Not One Penny resists the “Trump Tax” through protests, contacting legislators, posting articles, and more.
- Indivisible ensures that people from every part of the country have the opportunity to voice their opinions and resist laws such as the “Tax Scam.”
- As always, contact your state’s elected officials and voice your concerns or support.
This brief was compiled by Ann Furbush. If you have comments or want to add the name of your organization to this brief please contact email@example.com.