Letter: Trumpcare is a disaster for the old and poor

On May 23 the nonpartisan Congressional Budget Office released its cost estimate on hr 1628, the American Health Care Act (AHCA), on which Congressman Faso voted  Yes. This act is nicknamed “Trumpcare.” The CBO report makes clear that it caters to the young and wealthy at the terrible expense of lower-income elders.

Table 5 forecasts the year 2026, comparing AHCA (“Trumpcare”) and current law (ACA, “Obamacare”) as to annual net cost of health insurance for a “non-group” person. [Net cost equals premium minus value of tax credits.]

Under ACA in 2026, a 21 year-old NYS resident making $26,500/yr would face a $5,100 premium. With tax credits worth $3,400; the net cost would be $1,700 (6.4% of $26,500). A 64 year-old with the same income would also have net cost equalling 6.4% of income. [His/her premium is three times higher but tax credits, based on income rather than age, are also higher.]

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Under “Trumpcare,” the 21-year-old would have a lower premium though less tax credit; net cost equals 6.6% of income. Under “Trumpcare” however, the 64-year-old’s premium would be five times that of the 21 year-old. [Tax credits are pegged to age, not income, and are only double those of the younger person.] The older person’s net cost would be $16,100/yr, a staggering, unaffordable 61% of income to buy health insurance.

Under the ACA, a 21-year-old making $68,200 in 2026 would pay 7.4% of income; a 64-year-old, 22%. In sharp contrast, under “Trumpcare” the net cost to the 21-year-old would be just 2.5% of income, one third of that under “Obamacare.” The 64 year-old’s would be 24%.

Payoff to the young and affluent, disaster for older and poorer. That’s the “Health Care” bill our Congressman voted for.

Stephen Shafer

Saugerties

There is one comment

  1. virginia

    News Flash… long before Trump was even a candidate, healthcare … aka Medicare…was already becoming a disaster for the elderly…of whom I am one. Medicare cuts back on medications, decides one is better than another, de, limits treatment like physical therapy, insisting on the use of pain medications (addictive pain meds in some cases) denies payment straight out for other medications, denies payment for necessary procedures …all of which Medicare says can be appealed. The problem is the patient population are often too sick, or in too much pain to go through the process and jump through hoops …. and this is just a smidgen of what is going on.
    Oh, and BTW, calls to medicare are answered by representatives who read the answers from the BOOK whenever i call for a CLARIFICATION of what I’m reading in the book….

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