Obamacare and Trumpcare economic differences

It was one of Donald Trump’s great electoral promises: to destroy the universal healthcare coverage system known as Obama care the main social legacy of Barack Osama’s presidency. Although the new president admitted that, no one knew health coverage was such a complicated issue important details of the Republican proposal are already known to replace Obama’s Affordable Care Act.


In a country where until the arrival of Obama care a serious illness could ruin the whole family, eliminate coup universal health coverage would be an extremely unpopular measure. For this reason, Trump care maintains many key elements of the existing system, such as the inability of insurers to reject a patient because of ‘pre-existing conditions’.

The Trump system is more flexible being insured is no longer compulsory and premium tax returns as a way to recover medical expenses which in general affects the lowest incomes and benefits the highest in comparison to the Existing regime. Let’s review the fundamental differences of the new American Health Care Act versus the current Affordable Care Act.

Fewer obligations for insured and insurers

The main novelty of the Republican proposal is that it reduces the obligations of both citizens and insurance companies. On the other hand, it eliminates the requirement that large companies provide health insurance to their employees. It is estimated that these measures will double the number of people without medical coverage in the next 10 years.

The price limits set by Obamacare also relax. For example, until now insurers could charge elderly patients no more than three times as much as younger patients. If approved the new plan can charge up to five times more. This price liberalization will mean cheaper insurance for the young and more expensive for the elderly.

Reducing Medicaid Public Insurance

Paradoxically, the United States is one of the countries that spends more public money on healthcare coverage. One of the great goals of Trump’s plan is to reduce this expense. To this end, the expansion of the Medicaid program a public service for those excluded from the private insurance market for low-income disability, etc is drastically limited. The expansion of Medicaid was one of the fundamental and more expensive elements of Obamacare.

The Affordable Care Act allows states to offer additional coverage at the expense of the federal budget, an option that has been embraced by most of them. With the Republican proposal, a per capita limit will be established on the federal contribution valid for all states.

Smaller and more egalitarian individual grants

The vast majority of Americans with medical coverage are insured either through their company. Through existing public programs the aforementioned Medicaid Medicare a similar program for pensioners insurance for the military. Precisely one of the main objectives of Obamacare was to subsidize the acquisition of individual insurance for citizens who were outside these groups and who used to be uninsured.

Trump’s proposal maintains direct subsidies through tax refunds however; it disengages them from rent, provided it is below $ 75,000 annually. Under the current system, the grant is progressive up to an annual income limit of $ 48,000. The new subsidies will also be independent of the geographical area with Obamacare the subsidy depends on the location, since the insurance prices also differ.