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Subsidies

Credit: Gage Skidmore - https://www.flickr.com/photos/gageskidmore/16652895246 This article explains the Trumpcare platform's position as it relates to subsidies. Trumpcare views subsidies as one of the biggest flaws in Obamacare, blaming the steep rise in premiums on the burden caused by subsidies.

Obamacare has granted subsidies to low and some middle-income families to aid in the affordability of their health insurance. The law limits the maximum amount of insurance premiums individuals and families have to pay based upon their income in relation to the Federal Poverty Level. These subsidies are the backbone of Obamacare's so-called "socialization" of money, and they are one of the most significant aspects challenged by the Republican party's platform. This translates into a significant portion of the motivation behind Trumpcare's first and most important goal: repealing Obamacare. Trumpcare would end the "giving away free money," but will still keep low income individuals and families from "dying in the streets."

Obamacare is a heat-seeking missile that will destroy jobs & small businesses; it will explode health-care costs; and it will lead to health care that is far less innovative than it is today. Every argument that you'd make against socialism you can make against socialized health care, and any candidate who isn't 100% committed to scrapping Obamacare is not someone America should elect president. Repealing Obamacare may be one of the most important and consequential actions our next president takes.[1]>

How do subsidies work?

Examples of subsidized coverage include Medicaid and the Children’s Health Insurance Program, additionally marketplace insurance plans with premium tax credits can also be another form of subsidized coverage.
Only in states that have expanded Medicaid coverage, your household income must be below 138% of the federal poverty level to qualify. There are 19 states, predominantly in the midwest and southeast, that have declined Medicaid expansion. In all states, your household income must be between 100% and 400% of the federal poverty level to qualify for a premium tax credit that can lower your insurance costs.[2]

Credit: Evan Guest - https://commons.wikimedia.org/wiki/File:Trump_with_supporters_in_Iowa,_January_2016_(2).jpgMost individuals receiving premium subsidies will receive it in the form of an advanced tax credit, with the subsidy applied directly to the cost of their insurance. Since these amounts will be based upon your projected income for the year, the actualy amount of subsidies you are eligible will in many cases differ. If you end qualifying for more subsidies than any amount will be received in the form of a tax credit when income taxes are filed.

Individuals who received greater amounts than they were eventually determined to be eligible for are responsible for repayment of some or all of the tax credits they received.The amount owed will depend upon their final household income. Households with a final income over 400% of federal poverty level will be required to pay back the entire premium subsidy amnount. Repayments are capped in several different tiers for those households with incomes under 400% of the federal poverty level. The tiers are determined by the % amount greater than the federal poverty level a household has earned.[3]

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