The American Health Care Act was outlined and discussed on Monday, with good and bad news for Republicans. The bill, which is expected to replace the Affordable Care Act, will most likely increase the number of uninsured people in the United States by 24 million in the next 10 years.
The American Health Care Act aims to cut Medicaid spending and remove subsidies created by the Affordable Care Act, reducing the federal deficit by $337 billion. Between 2017 and 2026, the American Health Care Act would slash Medicaid spending by $880 billion.
Although the American Health Care Act focuses on cutting spending, the bill would increase premiums from insurance policies in the individual insurance market in 2018 to 2019 from 15% to 20%. From after 2019, the premiums would then decrease.
According to President Trump, “We’re not going to have one-size-fits-all. Instead, we’re going to be working to unleash the power of the private marketplace to let insurers come in and compete for your business. And you’ll see rates go down, down, down and plans go up, up, up.”
By 2026, almost 52 million people are expected to be uninsured. Under the Affordable Care Act today, an estimated 28 million are uninsured.
Read the original article from Modern Healthcare here.