Donald Trump has revealed a myriad of components which we can expect to be incorporated into the future health care system of the United States. Trump has consistently mentioned that he will repeal and replace the Patient Protection and Affordable Care Act, also known as Obamacare. Trump has mentioned that he will keep some parts of Obamacare, including the guarantee of health insurance for all individuals, whether or not they have a preexisting health condition. Trump has also mentioned that he dose not want to include the mandate in Obamacare stating that every person must have health insurance, and that individuals will have the ability to decide whether or not to purchase health insurance.
Trump has also mentioned that he will incorporate aspects of Paul Ryan's previous proposal. Paul Ryan's previous proposals have requested that individuals on Medicare receive vouchers to cover their healthcare premiums, which will be distributed at a set value.
Block grants from the federal government to the states are also a part of Paul Ryan's healthcare proposal. These grants would be a fixed amount of cash that will rise with inflation and only generally specify spending, giving the states a degree of freedom with regard to spending allocation. Each state government could then create an individualized system of spending. They will have incentives to eliminate wasteful spending or fraud, and to protect resources.
Increasing competition between insurance companies by allowing each insurance company to offer its services in any state, seems to be a key component of Trump's health plan. When individuals have more plan options and can choose plans with the best deals from anywhere in the country, this could put more pressure on insurance companies to compete with each other and lower their prices, offering better deals for consumers. This could lead to an overall decrease in health insurance prices.
Individuals will be allowed to deduct their healthcare premium costs from their tax returns.
Utilization of health savings accounts requiring a trustee such as a bank or insurance company is another part of Trump's reform plan. Money contributed to a health savings account would be tax deductible and placed into an interest bearing account(tax free). The employer of an individual is able to contribute to the account and this contribution counts as a reduction in your income. The money is then used for medical expenses that arise. These accounts become the property of the individual and can be used by family and passed down to family members.
Price transparency from healthcare providers. The idea is that individuals should be made well aware of the costs of services and procedures at each healthcare facility, enabling them to choose the facility which offers the lowest price. This could increase competition between healthcare facilities, lowering healthcare costs.
Increasing access to cheaper drugs that are safe and effective. By taking away the barriers that companies face when trying to distribute drugs at a cheaper cost, and by incorporating imports from overseas of cheap and effective drugs, Trump plans to lower healthcare costs.
