By Axios StaffJanuary 4, 2021 12:29:17The Trump administration is trying to reshape health care for the country with a new focus on price controls, an increased emphasis on individual health insurance coverage, and shifting the goalposts on coverage.
The president has put the focus on making health care affordable and accessible, but it’s not clear how far he can go in terms of changing health care markets and how much of an impact that will have on insurance coverage.
President Trump at a news conference on the Affordable Care Act.
The administration has been looking at how to reshore the system to provide a healthier and more efficient system for Americans to buy insurance on their own.
“The administration is also proposing a number of other steps, including an increase in premiums for small employers and a requirement that all insurance companies cover preventive services,” Axios reported.
“The administration also said it will increase the amount of federal funding to cover Medicaid.
Trump is also calling for a reduction in the federal tax deduction for health insurance premiums, a move that could impact some people who pay the highest premiums in the country.”
The administration announced the plan on Wednesday, a day after the Congressional Budget Office said it was reviewing its own analysis of the Affordable Health Care Act, or ACA, a cornerstone of the Trump administration’s effort to overhaul health care.
“This administration is proposing to cut taxes for millions of Americans, raise billions of dollars in new revenue, and lower premiums for millions more,” said Health and Human Services Secretary Tom Price, who is leading the administration’s efforts.
“And it will do this by ensuring every American has access to affordable health care.”
The CBO is the independent body that assesses the effectiveness of the ACA, and the administration is considering a number to ensure that any changes it makes will have a significant impact on Americans’ health care, Price said.
A plan that has not been announced yet is to cut the tax deduction on employer-provided health insurance for people making less than $250,000 a year, the same as the average taxpayer, and replace that with a “cost-sharing reduction” to cover premiums.
It would also eliminate the tax exclusion for deductibles and co-pays for employer-sponsored health insurance.
Price said that while these changes would not affect people making more than $200,000, it would “ensure a meaningful tax credit for Americans with higher incomes.”
“The changes will not affect Americans who already have employer-based coverage,” Price said, adding that the changes would “encourage individuals to obtain coverage and encourage them to use their employer’s insurance plan.”
Price’s office did not respond to Axios’ request for comment.