Medicaid is a joint funded health care program, federal and state, for low-income and needy people. There are currently 77 million beneficiaries on Medicaid out of the 323.1 million people. 24% of America is on Medicaid. That is one out of every four people in our country.
Obama Care or the Affordable Care Act is a huge reason for this large number. Obama Care just pushed tens of thousands of people onto Medicaid and because the Senate was unable to repeal Obama Care, a program facing huge difficulty, it will face even more challenges. It is almost certain that President Trump will take two actions which will surely cause the demise of Obama Care.
It is highly likely he will direct the Internal Revenue Service to not enforce the rule requiring everyone to have health insurance. If people don’t have to buy insurance, more and more will chose not to. That means sick people and the old people will become a larger portion of the insurance pool and that will almost surely drive rates up… exorbitantly.
Our president will also stop paying extra money to the insurance companies under Obama Care. This portion of the bill was not passed in the house and Republicans claim that paying the insurance companies was illegal anyway. Courts have agreed with them. The Solicitor General, who is appointed by President Trump, will agree with both the President and the courts and nullify the provision.
When those subsidies to the insurance companies end, every insurance company in America will pull out of Obama Care leaving nobody to write insurance. Americans will really have no good choices. Americans will see their premiums rise dramatically and there won’t be any companies willing to write new insurance. THIS WILL BE AN ENORMOUS MESS!
Understanding this today should motivate families to plan and prepare today for the future, or uncertain future of health care. Once thing I can promise, health care will be a significant future liability for families. How you’re going to pay for it should be part of your future planning.