"It's time to give American families quality, reliable, affordable healthcare - and that's what we are working very hard to do."
- President Donald J. Trump
PRODUCING REAL SAVINGS:
President Donald J. Trump's actions on healthcare are already delivering real results for families, businesses, and the American taxpayers.
The President has taken action to deliver better healthcare alternatives with lower prices.
Three of these key actions include: eliminating the individual mandate penalty, expanding Association Health Plans (AHPs), and extending short-term, limited-duration plans.
According to a new report by the President's Council of Economic Advisers (CEA), these actions will create $453 billion in net benefits for consumers and taxpayers over ten years.
This equates to an average of $3,500 in net benefits per household over that time period.
FREEING AMERICANS FROM THE INDIVIDUAL MANDATE PENALTY:
President Trump's historic tax reform legislation removed the burdensome individual mandate tax penalty.
Obamacare's individual mandate coerced people into buying health insurance they did not want and burdened taxpayers because the plans are so heavily subsidized.
The penalty imposed a sizable burden on families, especially lower-income families.
Nearly 80 percent of households paying the penalty had annual income below $50,000.
Based on Congressional Budget Office (CBO) projections, CEA estimates that eliminating the penalty will benefit 5 million consumers by letting them buy other plans, goods, or services.
According to CBO, eliminating the individual mandate penalty will reduce taxpayer spending on the exchanges by $185 billion over the next 10 years.
EXPANDING HEALTH COVERAGE OPTIONS:
President Trump has expanded healthcare choices through Association Health Plans and short-term, limited duration plans.
CEA estimates that expanding AHPs and extending short-term health plans will each provide an $8 billion economic benefit per year.
CBO projected that more than 6 million people will enroll in these expanded coverage options, including one million who would otherwise be uninsured.
Last year, the Administration introduced a second pathway for employers to join together to form Association Health Plans and provide more affordable health coverage to employees.
A new report found that 28 AHPs have formed already, with more under development, and offer coverage similar to employer-based coverage.
Some AHPs show up to 30 percent savings on premiums.
The Las Vegas Chamber of Commerce is in the process of signing up 500 employers for an AHP, which could save some employees more than $2,000 per year.
The Georgia Chamber of Commerce is in the process of setting up a self-insured AHP that it expects may eventually enroll 800,000 people.
President Trump's Administration took action last year to expand short-term, limited-duration plans, giving Americans more access to plans that fit their needs.
Subject to State regulation, these plans can be offered for up to 364 days and renewed for up to 36 months after the Obama Administration limited them to 3 months.
Short-term health plans are a particularly attractive option for the nearly 30 million uninsured people with gaps in employment, and those most hurt by rising premiums.
Short-term health plans typically cost less than half of the cost of Obamacare plans.
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