Trump health care benefits wealthy
Donald Trump promised rural America he would repeal and replace Obamacare with something "terrific." He kept his promise. The American Health Care Act is terrific for the wealthy and young. For the rest of us, it is a financial nightmare. As many as 11 million Americans are about to lose their health care.
Under Obamacare, if you are 40 and earn $40,000, you now receive $4,150 in health care subsidies. Under the new plan, your subsidy is reduced by $1,150.
If you are between the ages of 60 and 64, your health care cost is about to skyrocket. Under Obamacare, insurance companies could only charge you three times more than they charged younger policyholders. Under the new plan, insurance companies can charge you five times more. Estimates are that you are about to pay 22 percent more for your plan.
There is more bad news for those between the ages of 60 and 64. You are about to lose $2,750 in tax credits.
Most Americans breathed a sigh of relief to hear that pre-existing conditions would be covered under the new plan. That sigh of relief was followed by a gasp. The new plan removes the requirement that insurers cover a share of the exorbitant cost. Americans with pre-existing conditions will see a huge increase in deductibles and copays.
It's time for good news. Wealthy Americans will be able to sock away more money in health savings accounts. Policyholders under 30, with incomes lower than $215,000, will receive generous subsidies. People in the top 1 percent will receive tax cuts averaging $33,000. People in the top 0.1 percent will receive tax cuts averaging $197,000.
Oh, to be young and wealthy!
The rest of us in rural America better not get sick.