Donald Trump’s Health Care Proposal vs. Obamacare
Trump’s objective is to make reforms for the moment and, longer term, to find an equivalent of the single-payer plan that is well-administered, affordable, and provides freedom of choice. This is clearly the template for his health care reform. And in this case, the government acts as a centralized agency that offers a market-based variety of choices. In examining his seven-point plan a little closer, you’ll be able to compare Donald Trump’s Health Care Proposal and Obamacare a bit better.
- Completely repeal Obamacare
This first point clearly needs no comparison; it involves repealing and replacing Obamacare completely. The chances are that any repeal and replace wouldn’t mean a sudden loss of insurance for the millions of Americans presently insured through Obamacare. More than likely we would see a one or two-year transition away from Obamacare and toward Trumpcare.
- Allow insurance to be purchased across state lines
Under Trump’s health care proposal, consumers would be allowed to purchase health insurance beyond just the boundaries of their state. The plan is that there’ll be competition between health insurers and as a result, premiums will less likely head higher.
Meanwhile, for Obamacare, the status quo that preceded the AC is that insurers tailored their health insurance plans to each specific state (and even counties and towns). The reason for this is centered on demographics and medical access for people within each state.
With this those living in a state with sparse population and relatively few specialized medical care facilities, are expected to pay higher premiums than the highly populous states – where there are more hospitals and specialized medical equipment.
- Full premium tax deductions
According to Trump’s proposal, one of the key incentives for acquiring health insurance would be the ability to write off the full amount of your premiums when tax time arrives. This also means richer individuals who can afford costlier and more encompassing, health coverage would gain a bigger tax break than lower-income individuals who could presumably only afford a lower-cost plan.
Under Obamacare, medical expenses exceeded 10% of your adjusted gross income before you are able to claim them as a deduction.
- Emphasize the use of Health Savings Accounts
Another component of Trump’s health care proposal involves the use of Health Savings Accounts (HSAs). The fact is, HSAs already exist, so what Trump is proposing here is obviously something most Americans already have access to. An HSA is a tax-deferred strategy open to individuals and families enrolled in high-deductible health plans.
Here there’s nothing substantially different from what Trump is proposing as HSAs are also currently available under Obamacare.
- Require price transparency from health insurers
Trump’s health care proposal vaguely calls for increased pricing transparency from health insurers as this will allow individuals to shop for the best price for each procedure. Enabling them to make more educated purchasing decisions, although he did not specify where this info will be gotten.
Under Obamacare, the exact same thing is seen and observed through its online marketplace exchanges. Therefore, Trumpcare and Obamacare are identical in calling for better price transparency.
- Block-grant Medicaid to the states
Clearly, a unique aspect of Trump’s health care proposal is the block-granting Medicaid to the states. Trump insinuates that local and state governments have a far better idea of what their needs are than the federal government, which means block-granting federal money should result in less waste.
Under Obamacare, states have the right to decide whether they want to accept federal aid to expand their Medicaid programs in which 31 states have chosen to do so. This expansion of Medicaid covers people earning less than 138% of the federal poverty level.
- Remove barriers to entry for overseas drug providers
Finally, Trump’s healthcare proposal involves breaking down the barriers to entry for imported drugs and drugmakers. The fact remains that pharmaceutical companies rely on the pricing of high branded drugs in the U.S. to subsidize their ventures in less profitable countries. But if Americans were able to look outside the U.S. to imported, safe and dependable drugs, from let’s say Canada, for their pharmaceutical purchases, they may be able to save money.
Under Obamacare, there’s no specific provision designed to reduce prescription-drug prices. Nonetheless, its transparent marketplace platform, and the introduction of the risk corridor were aimed at reducing premium inflation to a minimum.