How will the tax bill impact Medicare?
The Republicans have managed to pass the tax bill in the House and it was presented to Senate. There were thoughts that the Senate won’t hesitate much in approving the bill, too. But what does the bill have in it? How will the tax bill impact Medicare? Well, according to the pundits and experts, it will not have much for the health department. In short, one can say that the medical field will suffer due to implementation of this bill presented by the Republicans.
The impact of bill on healthcare
The bill simply means that the individuals will have less health insurance. They will not be able to opt for the insurances more and more. The elders and poor Americans, especially those who are not able to afford the regular health expenses, will have lesser coverage. Moreover, there is also a revenue cut for doctors meaning that they will earn less than what they were making earlier. Also, the myriad Medicare business will generate lower income and ultimately, it may result in a workforce that is not as healthy and as productive that U.S. was used to enjoy in past years.
How this happens?
This tax bill which has been approved by the house and presented by Republicans is the single most important legislation dealing with the department since the ACA (affordable care act) which came back in 2010. There are two primary aspects that deal with the medical department.
The first one is relevant to people who fail to have health insurance. It states that the individuals that are unable to have health insurance, required by the individual mandate, will not have to pay the penalties.
Secondly, the overall economic deficit will also increase. According to an estimation, an increase of around 1.45 trillion dollars is expected once this bill is put into practice.
So, what are the outcomes? What can you expect from this tax bill? Well, as per the CBO suggests, there will be a drop of up to 13 million health insurances. Among these 13 million, 5 million will be people that have bought the insurance previously under the ACA marketplaces or even outside it. It is because there will be no penalty to pay if they do not opt for the health insurance. Other people, the ones that do not qualify for ACA and have to pay hefty amount, will simply drop it because they will be able to spend the money on other luxuries.
Apart from that, increase in the federal deficit means that there will be a good reduction in spending by the federal sector. The Medicare and Medicaid spending accounts for nearly 1.25 trillion dollar which means that there is 30% of federal budget spent on it. So, with its decrease, it is likely that the medical department will suffer.
This is how tax bill will impact Medicare in upcoming days. At one side, the elimination of penalties mean that the individuals will give lesser priority to buying health insurances. On other side, the increase in federal deficit will lead to lesser spending on medical sector by the government.
For more information on Virginia Medicare, please contact MedicareFAQ.