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.]
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.