The Impact on Medicare & Medicaid

The repeal and replace legislation concerning the Affordable Care Act (ACA), or Obamacare, seems complicated for many consumers. Though it will likely see changes as it is debated in the Senate, the American Healthcare Act (AHCA) currently contains important changes to Medicare and Medicaid. If you are currently using either of these programs, here is how the AHCA could affect you:

Medicare

Under Obamacare, funding for Medicare is protected until 2029, ensuring coverage for those who are eligible for the foreseeable future. Medicare is not part of the online marketplaces, so this coverage is protected more than other plans. Part A of Medicare covers hospital bills, skilled nursing care (excluding custodial care), hospice and home services. The coverage varies based on state and Federal laws, congressional decisions concerning coverage, and local coverage decisions by the companies that process claims. Part A does not require any additional premium. Part B requires a monthly premium and covers medical services such as lab tests or wheelchairs. Part D varies more and covers prescription medications.

Currently, Part A is funded through payroll taxes (2.9% for employers and employees or 1.45% for each). Higher income earners see an additional .9% added. It is Part A that will primarily be affected. The AHCA proposes to eliminate these taxes for higher income earners, reducing the amount of financing available for Part A. The reduced funding will leaver fewer American uninsured, forcing hospitals to provide uncompensated care. The solvency, or ability to pay all what is promised, of Medicare will become greatly reduced, and Medicare will not be able to pay all benefits promised in Part A. Medicare will only remain viable for another eight years. This means that over the next few years, Medicare will be unable to support an increasing elderly population, and many seniors will be required to find insurance in the open market.

Since Medicare covers people over 65, the AHCA will affect those who lose coverage in another way. Under Obamacare, elderly consumers could not be charged more than three times the premiums of younger consumers. The AHCA will allow this factor to be increased to five time the rates of the younger population in states that are awarded waivers to opt out of consumer protections. Under these waivers, pre-existing conditions could cause rates to rise or coverage denied. Since many elderly Americans suffer from pre-existing conditions, these waivers could cause many to lose coverage.

Medicaid

Obamacare permitted the expansion of Medicaid so that states may allow for coverage of single, nondisabled adults slightly above the poverty line. The Federal government pays most of the cost in the expansion. This allowed 10 million additional people to enroll under the new requirements. Single adults with an income below $15,800 are currently eligible for Medicaid benefits. Many people join or leave the program as their income fluctuates.

The AHCA proposes cuts to the program that will equal up to $880 million dollars for the Federal government. States will not receive reimbursement for individuals leaving the program, so as people fluctuate out due to income, the allotted resources will dwindle and less people will be eligible.

Medicaid will change from an entitlement program to a grant program, meaning states will have the option of providing a set amount of money to the individual or receiving a set amount of money for all recipients in the state. As federal reimbursements to the states fade, the available resources for Medicaid will decrease. Fewer people will be eligible and fewer health concerns will be covered. Many who are currently eligible for Medicaid will have to find coverage in the open market.

Millions of Americans rely on Medicare and Medicaid for medical coverage. The AHCA, as it currently stands, will affect many of these people in the coming years. The bill will likely change, hopefully ensuring sustained coverage for Americans on Medicare and Medicaid, but it is still important to understand how the bill could affect your coverage.

5 Ways to Keep Your House During A Market Crash
Anyone paying attention to the housing market in the Los Angeles area knows that home prices have been at record highs. National Mortgage News suggests that this could be a housing bubble about to burst, and a decline in home prices and an increase in mortgage...
Unexpected Pregnancy Resources
 If the event that you know a low-income family who is experiencing an unexpected pregnancy, you may want to reach out to help. During this time, you can feel overwhelmed and not know what steps to take. But know that you can take on a supportive role in...
Find The Best Section 8 Homes & Rentals
Find The Best Section 8 Homes & Rentals Are you feeling a little frustrated searching for Section 8 homes and rental property? Below is a list of multiple Section 8 housing resources. These are not in any particular order. These are just eight very good resources...
4 Challenging Discussions (And How To Have Them)
It's not always easy to practice open and honest communication, especially with your family. Unfortunately, that lack of communication can have serious consequences. If you're having a hard time finding the courage to approach your family about an issue...
Best and Worst Student Loan Services
Best and Worst Student Loan Services This is the time of year when hundreds of thousands of Americans begin to prepare for their first semester in college. They begin to seek out the items that will sustain them during dorm life. Parents spend money on new sheets, hot...
The FHA and Home Loans
 The Federal Housing Administration (FHA) insures mortgages on loans provided through FHA-approved lenders. Since its creation in 1934, the FHA has insured tens of millions of homes for families in the United States. These mortgage insurances protect...
Solid Advice for Credit Repair
It may be difficult to find information on the best ways to improve your credit. There is a wealth of different tips in this article to help you rebuild your journey to credit repair. Using these tips can save you from stressing and prevent headaches....
Best Way to Build Your Credit Rating
In today’s world, credit can be easily destroyed. If you are young and entering the adult world, you may not always understand how to maintain a great credit rating. Often, you do not qualify for a loan or credit card due to having no credit. Lapses in employment or...
Searching for Online and Freelance Employment
Searching for Online & Freelance Employment Many career fields and skills do not fall under traditional frameworks for employment. Writers, photographers, marketers, teachers and artists may be able to find work as online freelancers to continue improving their...
“Believe in The Power of 3”
The number 3 is the first number to which the meaning “All” was given. It is the number of the whole as it contains the beginning, a middle, and an end. When you raise the number 3 to a second power, it simply magnifies everything you already have and...
Understanding Federal Grants (Part 1)
 Let me start off by asking you this question. How would you like free money that you will never have to pay back, from the federal government? Sounds great doesn't it? Well, the simple truth is that you can get it if the government decides to award you a...
Rent Assistance and Low Cost Housing
With todays economy fluctuating , many individuals and families are struggling to pay bills in a timely fashion, including their rent. The good news is that there are a variety of options available to anyone who is facing late fees, court dates or even...
Is Rent to Own Housing An Option?
Rent to own housing is a popular term that should be carefully considered. It can be an agreement between owner and seller to rent or lease a property until it is paid in full. The plan can work several different ways, some have zero deposits and no...
Easy Formula for Grant Applications
When you look forward to apply for a government grant, you will need to do a lot of research and make elaborate preparations. To give a kick start to your grant seeking process, fist you must understand the different types of grants available. You will...
Inexpensive Public School Alternatives
Sending kids to the public school a few blocks away is a simple task for some families. However, not all parents wish to follow this route. They may have concerns about the safety of the public school in the neighborhood, or they may want a different type of education...
Budget Tips for Today’s Family
If you are in charge of creating the family budget, chances are, you’ve had the unfortunate experience of having a brilliant budget plan that isn’t executed well. This happens to many families and couples, and with a little attitude tweaking, you can solicit the help...
5 Strategies to Save Money on a Shoestring Budget
 If you are one of the many people who live on a tight budget, you may feel the stress of your situation on a daily basis. Even a seemingly small issue that arises and has reasonable expenses can throw your budget off track. Reducing your costs is a great...
Social Security Benefits & Retirement
Though all Americans look forward to the day when they can kick back in a lawn chair and spend time working in their flower gardens, retirement comes with many burdens. A fixed income or access to a 401(k) may not be enough to supplement the lifestyle many seniors are...
5 Common Ways Families Overspend
If you are looking for ways to free up extra money in your family budget, you are not alone. You may be eager to use any extra money that you can find for debt reduction, savings, or other goals. While it may seem as though there is little or no extra room to scale...
Things You Need to Know About Section 8 Assistance
Things You Need to Know About Section 8 Housing Some families might find a safe, decent and affordable housing as a big challenge to tackle. Majority of regions in the United States do not have rent control laws in place. Therefore some renters find affording a...

Subscribe

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Family Picnic

Enter Your Email to Receive New Assistance Updates

Due to the overwhelming response, please enter your name and email to ensure proper results.

Thank You! You will now receive the latest assistance updates!

Family Picnic

Enter Your Email for Best Results

Due to the overwhelming response, please enter your name and email to ensure the proper search results.

You Are On Your Way!

Pin It on Pinterest

Share This