Washington, DC - "It’s time to give American families quality, reliable, affordable healthcare — and that’s what we are working very hard to do." ~ President Donald J. Trump
PRODUCING REAL SAVINGS: President Donald J. Trump’s actions on healthcare are already delivering real results for families, businesses, and the American taxpayers.
- The President has taken action to deliver better healthcare alternatives with lower prices.
- Three of these key actions include: eliminating the individual mandate penalty, expanding Association Health Plans (AHPs), and extending short-term, limited-duration plans.
- According to a new report by the President’s Council of Economic Advisers (CEA), these actions will create $453 billion in net benefits for consumers and taxpayers over ten years.
- This equates to an average of $3,500 in net benefits per household over that time period.
FREEING AMERICANS FROM THE INDIVIDUAL MANDATE PENALTY: President Trump’s historic tax reform legislation removed the burdensome individual mandate tax penalty.
- Obamacare’s individual mandate coerced people into buying health insurance they did not want and burdened taxpayers because the plans are so heavily subsidized.
- The penalty imposed a sizable burden on families, especially lower-income families.
- Nearly 80 percent of households paying the penalty had annual income below $50,000.
- Based on Congressional Budget Office (CBO) projections, CEA estimates that eliminating the penalty will benefit 5 million consumers by letting them buy other plans, goods, or services.
- According to CBO, eliminating the individual mandate penalty will reduce taxpayer spending on the exchanges by $185 billion over the next 10 years.
EXPANDING HEALTH COVERAGE OPTIONS: President Trump has expanded healthcare choices through Association Health Plans and short-term, limited duration plans.
- CEA estimates that expanding AHPs and extending short-term health plans will each provide an $8 billion economic benefit per year.
- CBO projected that more than 6 million people will enroll in these expanded coverage options, including one million who would otherwise be uninsured.
- Last year, the Administration introduced a second pathway for employers to join together to form Association Health Plans and provide more affordable health coverage to employees.
- A new report found that 28 AHPs have formed already, with more under development, and offer coverage similar to employer-based coverage.
- Some AHPs show up to 30 percent savings on premiums.
- The Las Vegas Chamber of Commerce is in the process of signing up 500 employers for an AHP, which could save some employees more than $2,000 per year.
- The Georgia Chamber of Commerce is in the process of setting up a self-insured AHP that it expects may eventually enroll 800,000 people.
- President Trump’s Administration took action last year to expand short-term, limited-duration plans, giving Americans more access to plans that fit their needs.
- Subject to State regulation, these plans can be offered for up to 364 days and renewed for up to 36 months after the Obama Administration limited them to 3 months.
- Short-term health plans are a particularly attractive option for the nearly 30 million uninsured people with gaps in employment, and those most hurt by rising premiums.
- Short-term health plans typically cost less than half of the cost of Obamacare plans.