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US Senate Launches Obamacare Cancellation Process: What to Expect

Фото: Depositphotos

Фото: Depositphotos

The US Senate voted to launch the process of canceling a key health care reform conducted by the current US President Barack Obama and known as Obamacare.

On Wednesday, January 11, a question was put to the vote on the feasibility of preparing a bill to repeal reform, writes Air force.

As a result, opponents of Obamacare won by a narrow margin: 51 senators voted for the document and 48 voted against.

Now the same issue will be put to a vote in the second house of the American Congress - the House of Representatives. He is also expected to receive support there, as the Republican Party has a majority in both houses.

Its representatives opposed the reform while it was being decided to implement it. In addition, the cancellation of Obamacare called one of his priorities, the elected President of the United States, Donald Trump, who will take office on January 20.

In the event that the House of Representatives votes for the beginning of the cancellation of Obamacare, the relevant committees will be engaged in the development of the corresponding bill. It is expected that it can be put to vote in a month.

Some Republicans have previously recognized that the process of canceling Obamacare can take months, and preparing an alternative health insurance program may take even more time.

Фото: Depositphotos

Фото: Depositphotos

However, Trump has already demanded the abolition of Obamacare as soon as possible, and now it is possible that the congressmen will vote for the abolition of the reform even before they select a worthy alternative.

The Patient Protection and Affordable Care Act, better known as Obamacare, was initiated by Barack Obama and passed in 2010, when the Democratic Party had an overwhelming advantage in both houses of Congress.

Then the law did not receive a single vote from the Republican faction. That vote is considered by many to be historical, since before that no other grand reform in the social sphere had been adopted in the USA by the votes of only one party.

Proponents of the law point out that thanks to the reform, 20 now has millions more Americans than before. The vast majority of owners of new insurance receive subsidies from the state.

So that the treasury could afford it, Obamacare obliges all Americans to get insurance. Otherwise, they must pay a fine of an average of $ 995 per year.

Since insurance still costs more, some Americans prefer to do without it and simply pay the due penalty. At the same time, critics of the law said that the constitution prohibits the state from forcing people to buy something from it.

Winners and losers

Failure of Obamacare may to the fact that it will be harder for millions of poor people and middle-class people to buy health insurance. But it will also help reduce the tax burden on rich people by 0,1%, which is on average equivalent to $ 197 to thousands. About it сообщает Tax Policy Center in its new report.

On average, low- and middle-income Americans will experience a small profit if Obamacare is canceled - about $ 80 per year for those who earn $ 48-83 thousands.

This is fraught with very different results - depending on whether there is a subsidy for the purchase of health insurance or not.

The overwhelming majority who do not receive the current subsidy - more than 90% - will receive a small increase in value (about $ 110). However, a minority who will lose one of these valuable subsidies — about 3% of those with low / middle incomes — will face an increase in tax: paying around $ 6200 a year more.

For more affluent Americans who are not eligible for subsidies, this will help reduce the tax burden. Primarily because giving up Obamacare would mean giving up 3,8% income tax on investment income, such as dividends and capital gains. (Income tax is currently paid in units earning over $ 200 thousands).

Read also on ForumDaily:

What will Trump's refusal from Obamacare

Medical insurance in the USA: how to start a choice

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In the U.S. Obamacare medical insurance belaying
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