Trump’s Justice Department endorsed eliminating Obamacare in its entirety, instead of just the individual mandate that penalized people who refuse coverage. Critics say it gives Democrats the advantage in the next election, because a large segment of the population wants Obamacare so long as someone else pays for it.
The US Congressional Budget Office estimates that it will spend $700-billion on subsidies this year to help pay the health-care premiums for Americans under the age of 65. The extravagant benefits of the government’s so-called ‘affordable health care’ has forced insurers to raise premiums by 34% in 2018.
The Tax Cuts and Jobs Act repealed the individual mandate portion of the Affordable Care Act that requires people who reject the insurance to pay a penalty of $695 or 2.5% of their income. However, Obamacare is still in effect and requires employers with businesses with 50 or more full-time employees to pay for their full-time employees health insurance, regardless of the cost. This is forcing many employers to reduce the number of full-time employees or go out of business altogether.
Republicans have unveiled their replacement for Obamacare. It will cover fewer people but, unlike Obamacare, it will not force people to buy coverage if they don’t want to. This article lists items that would be removed from Obamacare and those that would be added, such as a penalty if people fail to keep themselves continuously covered. Also, insurers will be allowed to charge a higher amount for older customers than for young adults. This is the same as charging older people a higher rate for life insurance or charging drivers with bad driving records a higher premium for collision insurance. In other words, the cost is higher for those most likely to benefit, which is a necessary feature of insurance if it is to function without tax subsidies.