Trump Says GOP Tax Bill Essentially Repeals Obamacare

This Tax Bill Is a Trillion-Dollar Blunder

5 Key Life and Health Sections in Final Tax Bill

5 Big Questions About Annuities for 2018

President Donald Trump claimed victory for “essentially” repealing Obamacare in the Republican tax bill that cleared the House on Wednesday.

The bill eliminates a tax penalty for Americans who don’t carry health insurance, a pillar of the Affordable Care Act, while leaving the law’s other elements intact. Insurers have warned that eliminating the requirement will cause them to raise premiums. Healthy people will have less incentive to sign up for coverage, leaving insurers with a sicker pool of customers overall, the companies and many economists and health policy experts say.

(Related: Obesity Linked to 13 Types of Cancer)

“The individual mandate is being repealed. That means Obamacare is being repealed,” Trump told reporters at the White House on Wednesday. “We have essentially repealed Obamacare.”

The nonpartisan Congressional Budget Office estimated last month that repealing the individual mandate would lead to 13 million more uninsured in 2027, and that premiums in the individual market would increase by about 10 percent. Lifting the penalty saves the government $338 billion over the next decade, the CBO said, because some of those who go uninsured would have gotten subsidized coverage. Lawmakers used that savings to reduce taxes.

Removing the individual mandate doesn’t undo other essential elements of Obamacare. The law still requires insurers to sell policies to sick people at the same prices as healthy people, and provides subsidies for low-income families to make health plans more affordable.

Trump also boasted that he successfully downplayed the provision to avoid media coverage of the change.

“We didn’t want to bring it up. I told people specifically ‘be quiet with the fake news media because I don’t want them talking too much about it,’” Trump said. “But now that it’s approved I can say: the individual mandate on health care, where you had to pay not to have insurance — think of that one, you pay not to have insurance — the individual mandate has been repealed.”

Trump said Republicans will “come up with something that will be much better” to replace the mandate. Republican legislation to replace much of the Affordable Care Act failed earlier this year.

The true importance of the mandate has been debated by economists and policymakers, and the CBO has said it is revising how it calculates the effect. S&P Global Ratings suggested last month that rolling back the penalty would save less than expected, and increase the number of uninsured by only 3 million to 5 million. About 6.5 million people paid an average penalty of $470 for not having insurance in 2015, according to IRS data.

— Related on ThinkAdvisor:

Copyright 2017 Bloomberg. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Unlike lawmakers, you dont have an army of staffers to read through the tax bill, so were here to help.

You are signed up!

A survey of advisors nationwide reveals how the use of ETFs is expanding and what factors are likely to further support this trend. width:300px!important;max-height:36px; ThinkAdvisor TechCenter

ThinkAdvisor’s TechCenter is an educational resource designed to give you a competitive edge by keeping you abreast of new tech innovations and need-to-know information that can be applied to your business. padding: 0px 81px;width: inherit; Retirement Wire Retirement Wire

Your resource for news, research and analysis to help you deliver more effective outcomes to your clients. Resources Client Guide: How to Tackle Hard Conversations About Alzheimer’s and LTC

Use the information in this guide to help your clients understand Alzheimer’s and the value of planning ahead

3 Differences Between Life Insurance and Roth IRAs

Are you still submitting paper applications on behalf of your insurance clients? It‘s time to go digital or risk going extinct.

Join this webcast to see how Trisha Qualy, Director of Wealth Management at AdvisorNet Financial, took client assets from $100 million to $1.3 billion in…

Join this complimentary webcast to learn innovative strategies that have proven effective in containing rising health costs.

Join this conversation as a panel of experts provides tips and best practices to optimize your tech resources for business growth.

Leave a Reply

Your email address will not be published. Required fields are marked *