The American Health Care Act

Just a couple of days ago the House approved the American Health Care Act, or the AHSCA, which was proposed by Donald Trump and his administration as a replacement for Obama's Affordable Care Act.  So, what are some of the basic differences between the AHCA and the ACA? And, what will its effects be on the American people?


The AHCA aims to reconstruct the Medicaid program--or government sponsored health insurance--through per-capita caps on federal spending on Medicaid employees.  This is intended to reduce federal spending over time, however, it also runs the risk of significantly reducing the number of Americans covered and their benefits.  According to recent reports, an estimated 24 million people will lose their health insurance over a period of 10 years with a 25% reduction in federal spending.  This reduction of Medicaid funding will also have serious effects on a local level.  Many local programs rely heavily on Medicaid, some of these programs being special education.  This means that these special-ed school districts will now have limited access to funds for equipment and services for students with disabilities.

The Acts also seems likely to take millions of people off of private insurance.  The bill allows insurers to raise rates more for the elderly, penalizes those who go for more than two months without continuous coverage, and replaces the Affordable Care Act's income based and cost based subsidies for exchange coverage with a tax credit that only adjusts for age.  The result of this is a system that rewards healthier people with lower costs while increasing premiums for ailing, elderly people.