Currently Viewing:
Newsroom
Currently Reading
What We're Reading: Medical Device Approval; Medical Laboratories Sue Government; ACA Sign-Up Deadline
December 12, 2017 – AJMC Staff
Racial Disparities Prevalent in Survival of Patients With Ovarian, Colon, and Breast Cancer
December 11, 2017 – Jaime Rosenberg
Sanofi's Insulin Lispro Follow-On, Admelog, Wins FDA Approval
December 11, 2017 – Mary Caffrey
The Past, Present, and Future of HIV Funding
December 11, 2017 – Jaime Rosenberg
What We're Reading: Harsh Flu Season; Potential Hospital Giants Merger; ACA Sign-Up Deadline
December 11, 2017 – AJMC Staff
ICER Seeking Public Comment About Migraine, Plaque Psoriasis Treatments
December 11, 2017 – Allison Inserro
ADA 2018 Standards Address Drugs With CV Benefits, Hold Firm on Blood Pressure
December 10, 2017 – Mary Caffrey
Heavy Healthcare Use Precedes Start of Acthar Injection for Patients With Rare Infantile Spasms
December 09, 2017 – Mary Caffrey
UC San Diego Researchers Receive $600,000 Grant to Test PI3Ky Inhibitor
December 08, 2017 – Kelly Davio

Cities That Will Fare the Worst Under the AHCA's Tax Credit Plan

Laura Joszt
The Republican healthcare law repeals several provisions in former President Barack Obamaís health law; however, while the GOP's American Health Care Act does provide financial assistance, similar to the Affordable Care Act (ACA), Americans will find that those dollars donít go as far as they did under the ACA.
The Republican healthcare law repeals several provisions in former President Barack Obama’s health law, but like the Affordable Care Act (ACA), the GOP's American Health Care Act (AHCA) does provide financial assistance. However, Americans will find that those dollars don’t go as far as they did under the ACA.
 
One of the key differences in the financial assistance is how it is allotted. Under the ACA, subsidies were determined based on a number of things, including the cost of healthcare in the local market and how much an individual’s income could purchase. This meant that someone in Anchorage, Alaska, and someone in New York City could make the same income, but receive different subsidies: the person in Alaska would receive more because the market was more expensive.
 
However, under the AHCA, the tax credits are based on age. This means that the same 2 individuals could receive the same amount of money if they are the same age, providing a distinct disadvantage to the person living in Anchorage.
 
A new WalletHub report assessed the impact of the AHCA by comparing 457 cities and comparing the ACA subsidies that a 2-person household earning the median income with both members of median age for each city would receive with the tax credit that a 2-person household with both members the median age for each city would receive under the AHCA.
 
“If the goal of the AHCA is to increase access to affordable health insurance, at a minimum, the subsidies should be tied to income to better assist low-income and older people in being able to afford coverage…” Elena M. Marks, nonresident fellow in health policy at Baker Institute, told WalletHub for the report.
 
The ranking was created using data from the US Census Bureau and Kaiser Family Foundation.
 
10. Asheville, North Carolina
Subsidy Difference: –$4232
 
The median age in Asheville is approximately 38 years old, which means that the theoretical household being considered for this report would receive a $5000 tax credit. However, under the ACA, this household would have received a much larger subsidy: $9232.
 
In general, North Carolina doesn’t fare well. The state has another 2 cities that landed in the top 10, while another 2 landed at eleventh (Greensboro) and thirteenth (Winston-Salem).
 

9. Wichita Falls, Texas
Subsidy Difference: –$4434
 
Wichita Falls skews a little younger than Asheville with a median age of approximately 32 years. As a result, the household being considered would also receive $5000 despite the fact that under the ACA, it would have received $9434.
 
This is the only city in Texas in the top 10. Overall, 7 cities in Texas will see a reduction in subsidies received, while another 38 will see an increase under the AHCA.
 


 
Copyright AJMC 2006-2017 Clinical Care Targeted Communications Group, LLC. All Rights Reserved.
x
Welcome the the new and improved AJMC.com, the premier managed market network. Tell us about yourself so that we can serve you better.
Sign Up
×

Sign In

Not a member? Sign up now!