There is also some speculation that the Trump administration could issue further regulations in the near future making simpler safe harbors for employers who wish to fund ICHRAs.
Tech insiders are already working on the platform that will efficiently allow this to seamlessly integrate with state exchanges. If we then consider different family sizes and ages of employees, we see that we have a rather convoluted issue for guaranteeing that the employer’s HRA funding meets the affordability standard by costing the employee no more than 9.78% of household income in 2020.
A 45-year-old in one zip code may very well pay a different premium than a 45-year-old in a neighboring zip code for the same exact plan.
(Related: New Final HRA Regs Could Help Brokers Reach Employees)įor example, how can an employer fund ICHRAs for individual plans and efficiently ensure they meet minimum affordability standards? Exchange plans are priced based upon plan, zip code and age. But it is still a new concept, with some rather restrictive and largely untested regulations at this point. This represents a tectonic shift in the way we deliver health care in the United States. It means that employers can now set aside Individual Care Health Reimbursement Accounts (ICHRAs) and allow employees to take the dollars out of those accounts to buy individual insurance policies on or off of the ACA exchanges. In June 2019, the Trump administration issued regulations allowing employers and employees to buy individual insurance plans with pre-tax dollars for the first time in U.S. Individual Care Health Reimbursement Accounts Specifically, the Trump health care brain trust has been laying the foundation to more widespread use of pre-tax dollars to fund individual health plans purchased by employees, as opposed to employers. However, behind the scenes, the Trump administration is asking many questions about, and setting a strategic course that would require the assistance of ACA exchanges to operate at peak efficiency. President Trump has been no fan of Obamacare. Trump’s Last StandĪ Trump reelection would add a four-year detour to America’s path toward socialized medicine. This, along with Trump fatigue for much of society, means that national health care policy will very likely be controlled by the Democratic Party and their increasing affinity for governmental control of health care. It is extraordinarily rare for America to elect a member of the same party after 8 years of that party in the Presidency.
Nationally, taxpayers fund about two-thirds of all health care expenses.Īdd to these facts that if President Trump is reelected in 2020, the following President (and very possibly entire federal government) is likely to be Democratic. In California, taxpayers already cover about 70% of what is spent on health care according to analysis by the UCLA Center for Health Policy Research.In four states (including the two largest, CA & TX), more Democratic primary voters on Super Tuesday said they had a favorable view of socialism than an unfavorable view, according to results from an NBC News Exit Poll.Every single 2020 democratic candidate for president supports the use of taxpayer dollars for illegal immigrant health care.57% of Democrats now view socialism positively. 47% of Democrats view capitalism positively, down from 56% in 2016.56% of Americans believe the government should provide a national health insurance program for all Americans, even if this would require higher taxes (only 40% opposed).In 2016, Democrats only held a 4-point edge (48% to 44%). 50% of Americans either identify as Democrats or lean Democratic 42% identify as Republicans or lean Republican.Hence, the ability for a citizen to buy into something like Medicare or Medicaid with taxpayer assistance if they make less than 400% (or 600% in the case of California) of the federal poverty level.Īmerica’s move to the left on most macroeconomic and social issues has been swift and unmistakable. A quick perusal of the 2020 Democratic Presidential candidates illustrates that the most conservative Democrats are all pushing for a growth of the ACA and the addition of a “public option” to the exchanges. By 2030, we’ll have some form of Medicare (or more likely Medicaid) for-all in place. America will have a much more socialized health care system over the next decade.