Medicaid Facing the Health Care War

Medicaid Facing the Health Care War



The overhaul on the health care system could create a huge financial impact, which would result in 22 million fewer people with medical insurance by 2026. Medicaid is facing a war with health care.

Those who lose coverage can access coverage through the individual insurances market. However, there are high premiums that come with purchasing insurance and not many people will be able to keep up.

The Affordable Care Act or Obamacare provides healthcare to low-income households. Families in states that chose the Medicaid expansion, could qualify with incomes up to 138 percent of the poverty level. For example, a family of five could have an annual income up to $39,716, in the lower 48, and qualify for Medicaid.

The Better Care Reconciliation Act of 2017 would reduce federal deficits by $321 billion over the coming decade. The Republican Plan can diminish and terminate enhanced federal matching funds and reduce subsidies for non-group health insurance. It can also repeal or delay the taxes on high-income people, fees imposed on manufacturers. along with exercising taxes. The Better Care Reconciliation Act will, among other things, propose setting caps on Medicaid spending. Then only increase the caps by the measurement of inflation that increases slower than medical costs.

Medicaid spending, under the existing law was $393 billion in 2017, and is predicted to grow to $624 billion by 2026. However, under the Republican Plan, Medicaid is only projected to reach $464 billion in 2026. It is designed so the increase in the cost of health care will out space annual Medicaid costs.

In 2017, 31 states, including Washington D.C., adopted the Medicaid expansion under the Affordable Care Act.

Medicaid has helped many families including Tangela Watson. “It helped a lot. That was one big thing I didn’t have to worry about.” Watson’s daughter Jamela has a rare and aggressive tumor on her spinal cord. Medicaid has covered the cost of her healthcare.

However, the Affordable Care Act is a transfer system from the wealthy to the sick. Basically those who live responsible able-bodied lifestyles must subsidize to those who do not. This will be the transfer of health via higher insurance premiums paid by the healthy. The Better Care Reconciliation Act is very complex and diminish Medicaid eligibility in this health care war.

Various components of Medicaid will be eliminated, such as funds for the 31 states that had opted to expand eligibility. In 2020, states can request a block grant, federal aid for non-disabled adults. It will also place a per capita cap on Medicaid, benefits, services, and spending.

Medicaid is a federal primary health insurance that pays for services for individuals and low-income families. It is also the primary payer that provides long-term care services so senior citizens and the disabled can remain in their own homes, instead of living in a nursing home.

The question that stains the surface of this health care war: Does the 20 percent increase citizens pay make a difference? Medicaid reform should allow people who work to collect benefits. Moreover, with affordable monthly premiums everyone can win..

Written by Nicole Thompson
Edited by Jeanette Smith


Washington Post: How Trump is a little bit right and a lot wrong about Medicaid
Business Insider: Here’s how much states would lose from the Medicaid cuts in the Senate Healthcare Bill
Chicago Tribune: Advocates worry GOP’s health bill would cut Medicaid for low-income Children
Congressional Budget Office: Staff of the Joint Committee of Taxation
Paying for SeniorCare: 2017 Health & Human Services Poverty Guidelines / Federal Poverty Levels

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