Death of health care?

Dear editor:

Per The New York Times on Feb. 17, 2017, re: the Republican ACA (Obamacare) replacement proposal, "It would fundamentally remake Medicaid, a Great Society program that provides health care to 70 million Americans, not just the poor, but also middle-class people who have run out of money and need nursing home care. Under the plan, Medicaid, an open-ended entitlement program designed to cover all health care needs would be put on a budget." The ACA subsidies which expand when incomes decline will be replaced with "fixed" tax credits.

As a tax professional, I would like to know what they mean by "fixed credit." There are different types of credits, with some simply reducing your tax bill and others, such as the EIC or education credits, that are not limited to your tax liability and they would require a tax return be filed. This is to help people purchase insurance policies.

Also from NYT, "The plan includes additional features that redistribute resources from the poor to the rich." It (the plan) would allow us to "save" more to Health Savings Accounts (HSAs) tax free, which is wonderful for those who have a sufficient income that the majority do not. This proposal would also substantially reduce funding to the states to provide coverage for low-income adults through Medicaid. Change how tax credits are distributed by giving a flat credit by age regardless of income.

Elections have consequences. I do not think this is what the people thought they were voting for. This will be voted on through a budget reconciliation which requires only 50 votes in the Senate, so can be completely passed with only Republican votes.

Judith Zitko

Hot Springs Village

Editorial on 02/21/2017

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