Yes, We Can Afford Obamacare

Photo courtesy of Obamacare.org

After Trump was elected President, millions of Americans signed up for insurance before Obama left office.

Ever since it was enacted on March 23, 2010, the Affordable Care Act (colloquially referred to as the “ACA” or “Obamacare”) has been one of the most contentious policies in Washington. Although its purpose is seemingly uncontroversial — to provide reasonably priced healthcare to the American people — Obamacare still faces enormous opposition among many members of the GOP.  Unfortunately for the many Americans covered under the ACA, the incoming Trump administration and Republican Congress is intent on repealing the law. Clearly, this would be a catastrophic mistake that would deprive millions of Americans of their needed healthcare.

One of the most common complaints about the Affordable Care Act is the high cost of insurance premiums (in layman’s terms, the overall price of insurance.)  While it is true that premiums have risen since Obamacare was implemented — the most common insurance plan will cost 22% more in 2017 than it did in 2016 — looking at these costs alone is a one-dimensional way to judge the Affordable Care Act’s success. First of all, the hike in prices only affects those who purchase their own insurance. Those who receive healthcare through their employer (9.6 million people) or Medicaid and other governmental programs (8 million), or the majority of Obamacare enrollees, are immune to rising premiums. Even the purchasers of individual plans, who are affected by price raises, can apply for a subsidy to mitigate the premiums. Additionally, as the Congressional Budget Office reported earlier this month, getting rid of Obamacare would actually cause premiums to increase by about 20-25% — thereby voiding one of the main arguments for repeal. 

Another frequently invoked criticism of Obamacare is the mandate, which is essentially an ultimatum between purchasing health insurance and paying a fine of $695 per adult in the household. While it may sound oppressive, the individual mandate is actually deeply misunderstood.

Despite what the name “mandate” may imply, individuals who do not want Obamacare for practical financial reasons can get exceptions from paying the fine. If purchasing a plan costs more than 8% of your household income, if you got covered during open enrollment, if you only abstained from coverage for less than three months, if you are below the tax-filing requirement, or if you have been denied Medicaid, the government will absolve your responsibility to pay the fine. Ultimately, the individual mandate exists to ensure as many Americans as possible get health insurance — not to push people further into poverty.

The Affordable Care Act survived numerous repeal attempts during Obama’s presidency, but it is currently in serious jeopardy due to the new administration.   Donald Trump, who has called Obamacare “a catastrophic event,” is eager to revoke the law as soon as possible.  Last Friday, on his first day in office, he signed an executive order that expressed his administration’s desire to execute a “prompt repeal” and “take all actions consistent with law to minimize the unwarranted economic and regulatory burdens of the act, and prepare to afford the states more flexibility and control to create a more free and open health care market.” Although in characteristic Trump fashion, he did not articulate any exact measures he will take to carry out the repeal, this executive order is still incredibly worrying. If the Trump administration revokes the Affordable Care Act, an estimated 20 million Americans will lose their healthcare coverage. Currently, Republicans claim that their intention is to “repeal and replace,” repealing Obamacare and then taking a couple of years to come up with an alternative and acceptable plan. However, if this occurs, those covered by Obamacare will be left without health insurance for as long as it takes the House and Senate to approve a new form of coverage.

With a Republican controlled House, Senate, and White House, it seems sadly inevitable that the Affordable Care Act will be repealed quickly under the new Trump administration. Although many Republicans will be pleased by this rejection of Obama’s legacy, it will have dramatically disastrous effects on millions of our nation’s citizens (including some of Trump’s supporters.) A full repeal of Obamacare will take away necessary healthcare from many vulnerable Americans for an indefinite period of time, a move which will be nothing short of a tremendous national tragedy.

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