The Strategist

TrumpCare will leave 52 mln US citizens uninsured

03/14/2017 - 13:24

Bill of the Republican Party, proposed as an alternative to a medical insurance system adopted by Barack Obama, will reduce the US budget deficit by $ 337 billion, but leave 62 million people without medical insurance. Office of the Budget for the US Congress noted in a report, "expenditures will be cut by $ 1.2 trillion ... until 2026, and revenues will be reduced by $ 0.9 trillion."

Gage Skidmore
Gage Skidmore
According to the Office’s estimates, prices for insurance for citizens will be growing over the next three years, but their value in nominal terms will decrease by 2026. However, the report’s authors think that it will be difficult to predict behavior of all market participants, which makes it impossible for congressmen to make exact calculations. 

U.S. Secretary of Health Tom Price and Speaker of the House of Representatives of the Congress Paul Ryan criticized the report’s findings. "We absolutely disagree," Mr. Price said. The chairman of the lower house, in turn, noted that the bill "will ensure lower prices and improve access to quality and affordable medical care". 

Representatives of the Republican Party of the United States published their plan to abolish Obamacare on March 7. The politicians are rather conservative about health system, yet they are suggesting preservation of two most popular Obamacare’s items. Insurers will not be able to withdraw health insurance from already sick people, and US citizens under age 26 will be insured under their parents' policies.

Earlier in January, the US Senate voted to abolish the health care reform of then-US President Barack Obama, reported Reuters. 51 senators approved appropriate resolution after six hours of discussion, and 48 voted against. After voting, the Senate will instruct the committees to start drafting a law on the abolition of the reform. According to the Associated Press, preparation of bills necessary to abolish the previous regulatory framework and transition to a new system may take several months.

Reform of the health care system in the US was legislated in 2010, with only votes of Democrats, who then controlled the Congress. The programme provides compulsory insurance for all residents of the country, as well as subsidies to the poor for health insurance. Supporters of so-called Obamacare consider these moments to be extremely important. The opponents, point to the fact that the programme caused a general increase in health care costs and has had a negative impact on the insurance market, including departure of several companies from it. According to official data for 2014, medical care spending of Americans increased by 5.3%. Obamacare is mainly supported by Democrats, and Republicans, who now have a majority in both houses of Congress, are generally against it.

One of the main campaign promises of President Donald Trump was abolition of the program. He repeatedly pointed to the initiative’s "inefficiency and a high price for consumers." In January, he urged fellow party members to move faster in this direction. "We must act promptly to ease the situation for the Americans", Republican Senator Mitch McConnell said in a statement on results of voting in the Senate.