Millions At Risk Of Losing Health Insurance From Republican Plan: NYT

The true potential consequences of the Republican health plan are starting to become clear, and according to a new report, millions of people across the country are at risk of losing their health insurance.

The New York Times report noted that Americans in their 50s and 60s are the most likely to lose their coverage and find insurance unaffordable in the Republican plan.

According to the Times, “Starting in 2020, the plan would do away with the current system of providing premium subsidies based on people’s income and the cost of insurance where they live. Instead, it would provide tax credits of $2,000 to $4,000 per year based on their age.”

But the important point as the Times points out is that the tax credits under the Republican plan are far, far less than the subsidies that many Americans are currently receiving under Obamacare. And “For many people, that could mean the difference between keeping coverage under the new system and having to give it up,” the New York Times points out.

The report also quoted the CEO of Molina Healthcare, “The central issue is the tax credits are not going to be sufficient.”

“A report from Standard & Poor’s estimated that two million to four million people would drop out of the individual insurance market, largely because people in their 50s and early 60s — those too young to qualify for Medicare — would face higher costs,” the Times reported.

Other analysts have estimated even larger numbers losing their health insurance.

In the Republican plan a 60-year-old would be able to receive a maximum of $4,000 tax credit to help purchase health insurance. But the average cost of a health plan for a person in their 60s could will cost an average of $13,100, according to Standard & Poor.

Importantly, insurance companies are currently not allowed to charge older Americans more than three times what they charge younger Americans. Under the Republican plan, insurance companies will be allowed to charge older Americans five times what they charge younger Americans.

The New York Times interviewed a man who is 60 who currently “receives a tax credit of $2,097 a month for his family of four and pays $66 a month out of his own pocket.” He is worried about how his family will afford coverage under the Republican plan.

“His family’s total annual tax credit of $25,164 would be reduced to $11,500 under the new plan, covering less than half of the total cost of his current coverage,” the Times noted.

You can read the full New York Times story here.