Question

In: Economics

At the same time the Affordable Care Act is popular with voters, the health insurance mandate...

At the same time the Affordable Care Act is popular with voters, the health insurance mandate was ended early in the Trump Administration. Are you optimistic or pessimistic about the future of the Affordable Care Act (now that the requirement for everyone to have health insurance has been eliminated)? Why or why not?

Solutions

Expert Solution

Under trump's administration, individual mandate was eliminated. Earlier it was mandatory that all U.S. residents should either have health insurance or pay the penalty.

By eliminating the mandate, the penalty for skipping insurance was removed.

Under Trump's administration, states were allowed to add work requirements to Medicaid.

This lead to the imolication of control on the beneficiaries with the right incentives to live healthier and independent lives.

Under Trump's administration, Cost-sharing reduction subsidies to insurers have been ended.

Access to short-term plans has been expanded. But people who get the short term plans aren't really fully protected if they have a serious health condition and they need the Insurance cover.

The cost of coverage in the individual market for people who don't have subsidies has increased ubstantially, due to the unstable situations created by administration and congressional repeal efforts.

In the individual market, the unsubsidised enrollment has shrunk but enrollment in subsidized market has reduced to a lesser extent.

The replacment of ubsidies with flat tax credits, could result in the collapse of health insurance markets.

The elimination of coverage expansions and retaining provider payment cuts can result in devastated health care safety net.

This combination of reduced coverage and a diminished safety net will result in pressurising the public health departments.

Thus, ACA under Trump's administration have its own pros and cons. To make it a success in future, the administration should takw wise steps in making further plans.


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