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Replacing Obamacare Will Be Harder Than Any Republicans Thought

Replacing Obamacare Will Be Harder Than Any Republicans Thought

President-elect Donald Trump has made many promises as he campaigned for the Presidential election. While no one knows which promises he'll keep and if he'll be able to accomplish many of them, repealing the Affordable Care Act will be difficult. Here's why:

The Repeal

It took President Obama several years to create and complete Obamacare. The system is vast and complex. Plus, it took years just to approve the legislation before any implementation could be completed. Repealing the system is not going to happen overnight.

Millions of people utilize Obamacare. And many Republicans agree that instantly repealing the system could cause a shock to the industry – and not in a good way. No matter what happens, most predict change is inevitable.

Trump could sign a repeal of Obamacare in his first days in office. Then ensure it doesn't go into effect for some time. This would allow Republicans to draft complex plans and policy for the replacement of the Affordable Care Act. Everyone in Congress is confident that repealing the act will be much easier than replacing it.

For example, certain provisions will be included in the new health care laws and mandates. Many Republicans, including Trump, like the age provisions that allows young adults to stay on their parent's insurance plan. Other Republicans are found of provisions that offer guaranteed coverage to all.

Health Insurers & ACA

Health insurance companies are essentially playing a waiting game at this point. The Affordable Care Act was a complete and utter shock to the industry. Many insurers struggled to cope with the various regulations and costs. However, now that the act is in place, things seem to be running smoothly.

Repealing and replacing Obamacare will be anything but smooth. Many health insurance companies are crossing their fingers in hopes of a minor disruption. Most people in the industry don't want to see the shock and chaos that implementing Obamacare brought just a few years back – again!

Getting Into the Details

Obamacare, repealing, and new replacement legislation is going to get tricky. For instance, most believe that guaranteeing coverage for pre-existing conditions is an important piece of legislation. However, many argue that the mandate requiring all Americans to have health coverage is unjust.

Alternatives to the mandate have been discussed. However, most agree that the financial penalties found in the mandate ensure more Americans get coverage. Without the financial penalties, there would be many people who wouldn't buy coverage

Many Republicans, like Speaker of the House Paul Ryan, have proposed similar legislation to Obamacare. He'd like certain people to receive tax incentives to help people afford the type of coverage they need. He's also interested in protecting people from rising rates for illness – when they maintain continuous health insurance coverage.

Breaking Records

While Obamacare has taken certain hits here and there, the people of the United States have hit a record low of uninsured. More people have coverage in the United States than nearly ever before. In this way, the Affordable Care Act was a success.

Not every aspect of Obamacare has been successful, though. Major insurance companies like Aetna and UnitedHealth Group both withdrew from the program. Premiums have skyrocketed, too. Plus, many Obamacare plans feature high deductible – ensuring many couldn't afford care if they got ill.  

The Reality of Obamacare

The Affordable Care Act will be repealed. With Trump as the President and a Republican House and Senate, the legislation doesn't stand a chance. The reality of the situation is this:

Once the bill is repealed, Republicans and Democrats will have to work together to replace the parts of Obamacare that everyone agrees on. It will take time, a lot of time – as that's just how things work in Washington. Hopefully, the time and change won't have too negative of an effect on the health insurance industry and the American public. 

For more information about health insurance contact Skyline Risk Management, Inc. - (718) 267-600.

Insurance, Employment, And A Trump Presidency

Insurance, Employment, And A Trump Presidency


What a year. Trump has been elected as the next President of the United States of America, promising many changes and garnering as much criticism as he has support. What he manages to actually do during the course of his presidency, of course, remains up to time itself. However, as the clock ticks towards his inauguration, here are some of the things he has said he will do regarding insurance, taxes, and the business world.

Trump and Healthcare

One of Trump’s main campaign points was a repeal of the Affordable Care Act. The Affordable Care Act was signed in by President Obama and gave health insurance to 22 million people. That is 10% of the American public who received insurance because of the existence of the Affordable Care Act, where many of them were uninsured before the Act being created.

So far, Trump and his allies have not given the American public any real answers regarding his health care plan, only that he wants to repeal the Affordable Care Act as soon as possible. This leaves the 22 million newly insured Americans with no real course of action should their current health insurance plans become defunct. He has thus far not replied to concerns about the healthcare industry and insurance companies that have benefited from the healthcare market set up by the Affordable Care Act. Trump has said he will provide universal health care coverage, but has not detailed what that will look like. He also wishes to make changes to Medicaid.

Insurance and Employers

Trump’s economic policies also include a repeal of the employer insurance mandate, the medical device tax, and the tax on medical insurers. While there has been considerably less backlash on this topic than on his health care policies, a lack of clarity regarding the future remains. However, the removal of these taxes and laws allows employers and the insurance industry the chance to have a say in the new president’s policies. Hopefully, there are a positive and effective series of policies created from the knowledge of employers and the insurance industry.

The Children’s Health Insurance Program

The future of the Children’s Health Insurance Program is also up in the air with the Trump presidency looming. This particular insurance program was created by Hillary Clinton in the 1990s as part of her time as First Lady of the United States. This program is up for review in 2017, and could put a strain on the relationship between Trump and members of Congress in support of the Children’s Health Insurance Program.

Lower Tax and Decrease Regulations

Growing in specificity and detail are Trump’s proposals regarding taxes and business regulations. Trump has proposed putting a hold on new business regulations and has said that he will ask related federal agencies to rank current business regulations in order of importance.

One of his most outspoken policies that gained the most support for him during his campaign was his promise to cut corporate and overall income taxes. He hopes this will jump start the economy and make up for the money being spent on the current military budget. He has not stated how much he will cut taxes by, and Congress may stall his efforts to change the current rates due to ongoing issues with the national budget.

Looking Ahead

We cannot say for certain what a Trump presidency will bring in terms of changes to the health care system, tax breaks, deregulated business and much more. Congress and various federal bodies, in addition to the outspoken American people, will set the tone for the next four years regardless.

For more information contact: Skyline Risk Management, Inc. at (718) 267-6600