Everybody should be afraid of the Republicans’ new healthcare plan because it will raise costs and leave tens of millions of people uninsured.
The American Healthcare Act is so poorly written; that even many Republicans oppose it, and it is easy to see why. The law is one of the most destructive pieces of legislation proposed in recent years.
Here are five very Good Reasons to be Afraid of the American Healthcare Act:
- Tens of millions of Americans would lose health insurance coverage under the proposal. The Congressional Budget Office (CBO) projected that there will be 52 million Americans without health insurance by 2026, if the AHA became law. The number of uninsured Americans will increase by 14 million by 2018, 21 million by 2020 and 24 million by 2026 under the GOP plan, the CBO estimated.
- Under the GOP plan premiums would increase by 20% in 2018 and 2019, the CBO estimated. The average person would see his or her health insurance costs increase by $1,542 in the first year and $2,409 a year by 2020, Fox estimated.
- Older people would see massive increases in their health insurance costs. Analysts predicted that the cost of insurance for the average 64-year old would increase by 30%, S&P Market Intelligence predicted. That person would end up paying $13,125 a year for health insurance, and receive a tax credit of just $3,500 to $4,000 under the Republican proposal. He or she would have to come up with an extra $9,000 to $10,000 a year for health insurance. Among other things, the Republicans would let insurance companies charge older Americans five times as much for insurance as younger, healthier people.
- The poor would really suffer; between four and six million Medicaid recipients would lose their health insurance by 2024, under the GOP proposal. The GOP would shift the burden of paying for Medicaid back to the states. State governments would be forced to raise taxes, cut benefits or throw poor people off of Medicaid in order to maintain the program.
- The plan does nothing to control healthcare costs. Prescription drug costs, hospital costs and related expenses are not addressed in the proposal. Instead it simply eliminates tax credits that help people buy health insurance and Medicaid benefits for the poor. Healthcare prices will keep going up under the plan because the government will have little or no power to contain them.
The only people who will benefit from the Republican plan are rich people who will get a tax cut. The plan eliminates a 3.8% tax on investment income and .9% payroll tax for people who make more than $200,000 a year. It would give a person with $1 million in investment income a $38,000 tax cut, Robertson William of the Tax Policy Center told National Public Radio.
Everybody should be very afraid of the American Healthcare Act. The bill slashes benefits, reduces coverage and gives the rich a tax break at the expense of working families.