Health Insurance Cancellation

What is Going to Happen to Tax Credits, Cost Sharing Reduction, and Medicaid under Trump and the Republican ObamaCare Repeal Plan?

We explain what happens to cost assistance (Tax Credits, CSR, and Medicaid) if ObamaCare is repealed by congressional Republicans under Trump.

In simple terms, there are only a few things to know about cost assistance under Donald Trump and a GOP controlled Congress.

  • First, generally speaking, ObamaCare offers lower costs to those making less than 400% of the poverty level via premium tax credits, cost sharing reduction subsidies, and Medicaid expansion. The GOP plans to defund or repeal aspects of all these things, and have suggested replacements in the past. See details of how ObamaCare’s cost assistance works. See GOP replacement ideas.
  • Republicans have been trying to defund and repeal ObamaCare since it passed. Now that they are in power they have begun a “repeal and delay plan”. This plan begins the defund and repeal process ASAP and delays the implementation of some repeal provisions while a replacement plan is worked on. The details of the full plan are currently uncertain, but the defund process has already begun. Learn about “repeal and delay”.
  • Despite repeal efforts, for now ObamaCare is still the law of the land here in early January 2017. It is very unlikely cost assistance would be repealed before 2018 as that would require rescinding promised cost assistance from those who are enrolling now in 2017 (prior to any defund or repeal measures passing). This applies to both premium tax credits and cost sharing reduction subsidies. The same should generally be true for Medicaid expansion. That said, nothing is impossible. We will keep everyone updated.
  • The GOP has put plans on the table for cost assistance (they want age based instead of the current income based) and Medicaid (they want to privatize it and do lump sum payments to states, it is currently a public join state-federal program).

Thus, right now things are uncertain, and it could get very bad for tens of millions of Americans. But that “bad” likely won’t start until 2018 (or later if defund and repeal measures are “delayed”). In the meantime, the GOP could surprise everyone by putting a better plan on the table. Right now their “better plan” isn’t really better or agreed on, but at least it is something.

Uncertainty and ambiguity aside, for now Open Enrollment 2017 is on, cost assistance is available to many families making less than 400% of the federal poverty level via the marketplace, employers must still offer coverage to full-time employees, and insurers can’t deny you, drop your coverage, or charge you more for having a preexisting condition.

What do you think?

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Dwight Odom on

Why not fix what is not working instead of starting over and quit calling it Obama care! It’s our public health care system. We need it and deserve it. To make it work better take private insurance out.Have drug companies stop ripping us off and make it a single payer system.

Kepali on

Lets address some disturbing “facts”.
As of this posting, it appears the Republicans WILL repeal the PP-ACA.
The Republicans have NOT presented any replacement plan what so ever.
Millions of Americans will lose subsidies, no longer be able to afford their insurance premiums and have to drop their insurance.
A percentage of those Americans will die as a result.
I can only assume that THIS is the Republicans “plan”, to “thin the herd” of sick Americans, and bring down premium prices when they
eventually come up with a real “plan”.
They will then “toot their horns” at how they replaced Obamacare with a more efficient and cheaper program.
There I said it. The king has no clothes !