One of the key promises of the new US president is to repeal and replace Obamacare which also known as the Affordable Care Act. According to the US Department of Health and Human Services, at least 2 million Texans have health coverage under Obamacare. Texans like Kate Payne were able to buy health coverage at more affordable rates.
Kate Payne is a freelance writer and producer of bitters liqueur. She has no employer that will provide health insurance. If Obamacare will be repealed, Kate is worried that an individual policy may cost too much. However, according to critics, what works for Kate may not work for businesses and healthcare providers. Many Republicans believe that the regulations created by health care hinder business.
According to Rep. Paul Ryan, the deductibles are so high that insurers are pulling out. A business that has more than 50 employees who are working for 30 hours per week is required to offer health insurance. Failure to follow the law means a penalty of $2,100 per employee. A business that has more than 200 employees is required to automatically enroll the company’s health plan.
A Texan that does not have coverage will have to pay a tax penalty through the income tax. The penalty will be 2.5% of the household income or $695 per adult and about $350 per child, whichever is higher. According to HHS.gov, premiums from 2010 to 2015 increased by 3.5% every year. Payne who is pregnant is worried about what the future will bring.
Payne and people like her are reluctant to start a business. They hope that if Affordable Care Act is repealed, a better replacement will be put in place. Right now Texas spends at least $1 billion from the state budget for uncompensated care. More than 200,000 young adults below 26 are benefited through their parent’s health plans.
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