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Elderly Americans would pay more for healthcare under new bill – and get less | Elderly Americans would pay more for healthcare under new bill – and get less |
(about 5 hours later) | |
Early retirement could be a dangerous time for some Americans if Republicans pass a plan to replace the Affordable Care Act, better known as Obamacare. | Early retirement could be a dangerous time for some Americans if Republicans pass a plan to replace the Affordable Care Act, better known as Obamacare. |
The Republican bill, called the American Health Care Act, would allow insurers to charge older adults five times more than the young, leading to especially astronomical spikes for less affluent Americans who retire early – $12,900 on average, according to Monday’s analysis by the Congressional Budget Office. | The Republican bill, called the American Health Care Act, would allow insurers to charge older adults five times more than the young, leading to especially astronomical spikes for less affluent Americans who retire early – $12,900 on average, according to Monday’s analysis by the Congressional Budget Office. |
“Because I’m low-income, I only pay about $8 a month,” said Aimee Desroches, a retired victims’ advocate who lives outside a “tiny little village” in the Maine countryside. Because she is 63 years old and eligibility for America’s public health insurance program for the elderly, Medicare, begins at 65, she buys insurance and the ACA subsidizes it. Currently she receives a $9,000 subsidy. | |
If the Republican plan passed, she would not only be charged more, she would also receive less help: just $4,900 per year. | If the Republican plan passed, she would not only be charged more, she would also receive less help: just $4,900 per year. |
For an average person earning $26,500 per year, out-of-pocket health insurance costs could rise to $14,600 a year, the Congressional Budget Office reported. By contrast, an average 21-year-old earning the same would see a $250 reduction in insurance costs. | |
“I would absolutely be unable to be able to have any health insurance,” Desroches said. The increase insurance costs alone would be “well more than my income”. | “I would absolutely be unable to be able to have any health insurance,” Desroches said. The increase insurance costs alone would be “well more than my income”. |
This could put Republicans in an existential bind: older people vote, they disproportionately vote Republican and the 38-million-member advocacy group for Americans older than 50, the American Association of Retired Persons (AARP), vehemently opposes the plan. | |
“Putting the financial burden on older Americans is not the way to solve the problems in our healthcare system,” said AARP executive vice-president Nancy LeaMond. “This plan increases insurance premiums for older Americans and does nothing to lower drug costs – doing the opposite of what older Americans need.” | “Putting the financial burden on older Americans is not the way to solve the problems in our healthcare system,” said AARP executive vice-president Nancy LeaMond. “This plan increases insurance premiums for older Americans and does nothing to lower drug costs – doing the opposite of what older Americans need.” |
The controversial plan has also been panned by conservative Republicans, who feel it does not go far enough to repeal Obamacare; by the left; and by doctor, hospital and patient associations. | |
AARP also skewered cuts that the plan would make to Medicaid, a government health insurance program for the poor and disabled. Savings from those cuts would benefit wealthier people and the healthcare industry, which would receive huge tax breaks. | |
“The plan would cut Medicaid funding by $880bn, which would jeopardize essential care for 17 million seniors and people with disabilities and shift the cost to states, blowing a giant hole in state budgets and costing state taxpayers billions.” | “The plan would cut Medicaid funding by $880bn, which would jeopardize essential care for 17 million seniors and people with disabilities and shift the cost to states, blowing a giant hole in state budgets and costing state taxpayers billions.” |
All told, the Republican plan could leave as many as 52 million Americans without health insurance by 2026, an increase of 24 million people from what was expected under the current law. Large cuts to Medicaid would eventually mean as many as 14 million low-income Americans would be unable to access the program, the CBO projected. The Republican plan would save the government $337bn in the same 10 years, largely by cutting programs that the ACA put in place. | All told, the Republican plan could leave as many as 52 million Americans without health insurance by 2026, an increase of 24 million people from what was expected under the current law. Large cuts to Medicaid would eventually mean as many as 14 million low-income Americans would be unable to access the program, the CBO projected. The Republican plan would save the government $337bn in the same 10 years, largely by cutting programs that the ACA put in place. |
Some of Obamacare’s most popular provisions, such as a ban on lifetime coverage limits, allowing children to stay on their parents’ insurance until age 26, and a requirement that insurance companies cover people who were previously sick (called pre-existing conditions), would remain. Americans would no longer be required to buy health insurance. | Some of Obamacare’s most popular provisions, such as a ban on lifetime coverage limits, allowing children to stay on their parents’ insurance until age 26, and a requirement that insurance companies cover people who were previously sick (called pre-existing conditions), would remain. Americans would no longer be required to buy health insurance. |
Many middle-class Americans already pay health insurance costs out of pocket because the ACA does not provide subsidies to individuals who earn more than about $46,000 a year. | |
Chicago resident Nicoletta Skarlatos said she can afford changes proposed by Republicans, but still worries about low-income peers. Currently she buys insurance for herself and her 18-year-old son through Obamacare exchanges. Each month she pays $800. She does not get a subsidy now. | |
“I just turned 55, so I am going to be one of the ones whose premiums is going to increase even more,” said Skarlatoes. “Because I make over $100,000 every year, I can afford it if I had to; it’s going to be a huge chunk of my money every year.” | |
However, she added, “I’m thinking of people making only $50,000 per year – these people are going to be thrown out of insurance.” |
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