The GOP Tax Bill has repealed Obamacare’s individual mandate, so how does this affect you?
Contrary to the statements made by President Trump, repealing Obamacare’s individual mandate does not mean that Obamacare has been repealed completely. However, this change will bring about change for many Americans. Read on to learn more about the individual mandate and how it’s repeal will affect you.
Obamacare’s individual mandate required all Americans (except for those who qualified for a hardship exemption) to carry a minimum level of health insurance. The point of this mandate was to ensure that everyone, not just sick people, had health insurance. By widening the insurance risk pool to include a mix of young and old, healthy and ailing, insurance premiums decreased for everyone. Additionally, this mandate ensured that people did not get health insurance when they were sick, only to cancel their policy when they got better.
The repeal of this individual mandate will not bring immediate changes. The mandate is actually still in effect for 2018, and even when the repeal does come into effect, federal subsidies that help Americans cover their insurance premiums, and the Medicaid expansion in many states with still be in effect for the time being. For the most part, the repeal will affect those that do not access to employer-provided health insurance but make too much money for aid programs such as Medicaid.
This repeal will cause about 13 million fewer Americans to be insured in 2027 as compared to current rates. Healthier and wealthier individuals might forgo coverage and even medically needy people may not get coverage because they do not know what options are available for them. This lack of urgency to enroll is projected to result in a 10% spike in insurance premiums
This is how the GOP’s repeal of Obamacare’s individual mandate will affect you. Do you have more questions regarding your health insurance? Then don’t hesitate to contact the experts at Donald Weiss Insurance Services. Our dedicated team is ready to assist you with all your insurance needs.
