Group Health Insurance under TrumpCare, what to expect

There will be no drastic changes for at least 2 years

When you have something as big as the ACA, Affordable Care Act, to make any changes of any consequence will take many months, even years.  The gigantic entity known as Covered California is not something that you can replace or even deal with, until you have something that you can replace it with.  I get calls daily from worried people that think their health insurance will be cancelled or taken away, or that their subsidy will stop.  Rest assured that none of that will happen.

Subsidies for health insurance are here to stay

Now that people are used to getting subsidies, to take them away would be chaos.  They will change them, most certainly, but stopping them will not happen.  How they are structured, how long you receive them, and who gets them, should change.  We have many people that have qualified to received government subsidies that are millionaires, seriously.  Someone that is able to adjust what their Gross Income shows, can potentially get their health insurance paid by the government.  There have been many people that are getting the subsidies that should not and that should stop.

Potential changes in how Group Health Insurance is delivered under Trump and TrumpCare

Trump has suggested to allow out of state insurance companies to sell Group Health Insurance to employers in California.  Not a bad idea and definitely worth a try.  Trump has suggested that health insurance premiums for employees and everyone, be tax free.  That would save people a ton of money on their taxes.  I’m confident there would be a yearly cap on what is deductible.  Under the Affordable Care Act (ACA), employers can still get a business deduction for any Employee Benefits they pay for.  Trump believes there should be a yearly limit on what employers can use as a business deduction.  The thought behind this is to encourage employers to purchase lower priced, higher deductible plans, hoping to curb Group Health Insurance utilization.  Honestly, I think its worth a try.

Bottom line….not a ton of changes coming any time soon.  Group Health Insurance, Employee Benefits, and Business Health Insurance is not going away

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