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How Will Trumpcare Impact Your Finances?

After months of campaigning and debates, the November election for president has finally come and gone. With a shock to many voters nationwide, Donald Trump handily took the election, becoming the United States' newest president-elect. While there are still a few weeks left until he officially enters the office and assumes the title, questions are flying around about the fate of the Affordable Care Act, the act that made health insurance accessible to thousands of people who could not afford traditional coverage. Whether you are dreading the presidency or rejoicing, the ACA is sure to see some major changes. These changes will undoubtedly impact your finances, but how?

Similarities

Despite what many people think, Trump does not plan on throwing out the ACA. This would only cause panic and chaos, especially without something to replace it. While he does plan on making some changes, there are some things he does plan on keeping. One aspect that will stay is the clause pertaining to pre-existing conditions. Under Trumpcare, insurance companies cannot deny coverage simply because a person has an illness prior to signing up. Another popular clause that he intends to keep is one which allows children to stay on their parents' plan until the age of 26.

Reducing Funding for Social Assistance

Thousands of people depend upon social assistance programs, particularly Medicaid. This program allows traditionally uninsured individuals to afford their medical bills. Trump's plan seems to favor significant reductions in funding for these types of programs, with the belief that helping the economy will reduce the need for such things. However, without a solid economic plan already in place, taking away Medicaid funding right away could be detrimental to those who depend upon it. Many would be left without social assistance, and still unable to afford traditional insurance, which means if a medical emergency were to happen, you would be left with a hefty bill.

Eliminating Individual Mandate

A big part of Obamacare is the requirement that everyone sign up for health insurance. While having health insurance is nice, not everyone can afford it, even with subsidies. And health insurance companies are left having to offer lower prices, which means that prices are being raised for those with traditional insurance. Trump, however, wants to remove the individual mandate, making it optional to sign up for insurance. Without the pressure to pay the costs of those who can't afford the full cost of their plan, insurance companies will be able to lower the cost of their premiums, which would then make them more affordable to their current customers as well as to many more who originally may not have been able to pay.

Allowance of Interstate Insurance Sales

Right now, there are many complex laws that keep many people bound to a limited number of insurance companies, and many plans are not accepted across state lines. For instance, a person who has worked for the state of New York, is provided with a specific insurance when he retires. If he moves to Florida or the Carolinas, due to their high New York retiree population, the plan will be accepted. However, if he moves to Georgia, the plan will be rejected, and he is stuck paying out of pocket despite having valid insurance. He would need to drive well over 100 miles just to get the care he needs at a practice or hospital that accepts his plan. Another disadvantage is that insurance companies can raise the rates as high as they want because people have nowhere else to turn.

Trump's plan is to get rid of these complex laws and make it possible for insurance customers to purchase across state lines. This opens up a lot of competition for insurance companies throughout the United States to offer the lowest prices in order to attract customers, greatly relieving a lot of stress on the wallets of many Americans who are bound to a single company.

There is much debate over exactly what is going to happen with the ACA, Trumpcare and your finances. Some aspects seem detrimental while others appear to be quite helpful. However, without any actual legislation in place, exactly what will happen currently remains yet to be se