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We explain what happens to cost assistance (Tax Credits, CSR, and Medicaid) if ObamaCare is repealed.

This page was written at a time when a repeal and replace plan was being discussed in Congress in 2017, but it should still be relevant in general since repealing the ACA in any year would have the same general effect.

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 defunding process has already begun. Learn about “repeal and delay.”
  • Despite repeal efforts, for now, ObamaCare is still the law of the land here in mid-2017. It is very unlikely that cost assistance would be repealed before 2018 as that would require rescinding promised cost assistance from those who are enrolling now in 2017 before any defund or repeal measures are passed. This applies to both premium tax credits and cost-sharing reduction subsidies. The same should 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 make lump sum payments to states, it is currently a public joint 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 better or agreed on, but at least it is something.

Uncertainty and ambiguity aside, for now, Open Enrollment 2017 was held as scheduled. Expected levels of cost assistance were available to many families making less than 400% of the federal poverty level through the marketplace. Employers must still offer coverage to full-time employees. Insurers can’t deny you, drop your coverage, or charge you more for having a preexisting condition.

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Cecelia on

I was a republican for 41 years. Never again. I am tired of them lying and hurting the people they represent. I worked for 42 years and now they take my chance for healthcare. I have never been on welfare or Medicaid but without aca I will be uninsured.

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 !

Patriot on

Sounds Good! Let’s make America Great Again and Everyone that is able – Responsible for their own actions! No more paying for those that are lazy or illegal while lots of our good citizens are suffering. Let’s help the deserving and help the other get on their feet with new jobs.

Let’s raise the bar for ourselves as well as the government.

Patricia on

I am not lazy but I am 60 years old and my husband and I live on $1400.00 a month without Obamacare I would not have any health care & the worst part is I can’t find a job that would hire me when I can’t stand or walk with out the aide of a walker and there are days I can’t even get out of the wheel chair and I can’t get state help and will not be able to collect SSA or MEDICARE because I have not worked for the pass 15 years. SO BOTTOM LINE I WAS BORN HERE LIKE MT PARENTS AND THEIR PARENTS BUT I AM A WHIT PERSON SO I WILL GET SCREWED ALL THE WAY AROUND BY OUR GOVERMENT REALLY DOES NOT MAKE PROUD TO SAY I AM A AMERICAN SO TAKE IT FROM THERE.

Daphne Kelley on

I am very upset with the uncertainty about my medical coverage. I am a disabled person receiving Medicaid until the end of March 2016 {which was not extended in GA}. I will not qualify for Medicare for 2 years. I have no idea what I need to do or what will happen to me. I am a college educated person who has always worked. I did not ask to become disabled. I am so frustrated and angry at how no one listens to the “little” person. I feel like I have no voice and not important enough to be heard. Someone, please help!!
May God bless us all!!!

Darlene on

This Obamacare has made a mess of things for us. Last year we paid 61.16 a month, 5.00 for Personal Dr. and 2.00 for scrips. This year my husband is on disability and I work 15 hr a week and ins went way up. The less money the more you pay. We can’t afford it but can’t afford not to have it either so we have know choice. We now pay 231.98 a month, specialty Dr. 80.00 a visit, PCP 30.00 and scrips 30.00 BUT that is only after our 5,000.00 deductible is met. So until we pay out of pocket $5,000.00 big bucks we have to pay 100% of everything. My husbands injections are like 3,000 a month, he will probable have to stop them.One of my scrips is over 300.00 and yea paying those our 5,000 will be met real fast if i had the money to do so. But, even then everything is so high. I don’t know how we are going to make it. Please hurry President Trump and help us now.

Dorothy Lenz on

Health care is not a “given” and should not be under the constitution. We should have freedom of choice as to what plans we want to have and what plans we do not want to have. Each person should be able to choose his own health care based on his ability to pay for it, and not “have to.” The idea that others should pay for others’ health care is socialistic and not per the constitution of the United States of America. on

What Constitution is it that you are reading? I just am wondering because I can cite it and can’t figure out what the heck you are talking about.

anyway, to refute your claim with the source you cite:

1: The Congress shall have Power To lay and collect Taxes, Duties, Imposts and Excises, to pay the Debts and provide for the common Defence and general Welfare of the United States; but all Duties, Imposts and Excises shall be uniform throughout the United States;

Tax for not having coverage = mandate. Mandate system, one of three universal healthcare solutions known to mankind. Upheld by the Supreme court.

The right to tax income is an amendment to the constitution (and thus IS the constitution). And Medicare and Medicaid have certainly been upheld thus far. Could go on.

Steve on

Based on your interpretation of the Constitution that would also make Social Security and Medicare unconstitutional, not just Obamacare.

Lee on

While we are at it why not take away social security and medicare too? These are social programs and since the republicans don’t like social programs-time to go too. You don’t have enough money to live on- too bad. You are 65+ but can’t afford health care- too bad. Only the wealthy will survive in this climate. Yes we are certainly going to make America great again for those who can afford it.

Russell A Barrett on

I can’t afford to lose my premium assistance do to income and can’t go without medical insurance I pray there is a good plan for the future the system in place now is working for me and hope I don’t lose a good thing

Larryu on

place these people on VA insurance…better than nothing…get behind the veterans that served our country