The Republican health plan will lead to 13 million Americans losing their health insurance by eliminating the insurance mandate. This will cause healthier people to leave the insurance market and drive up the cost of coverage for everyone else who remains. Republicans will redistribute the money saved from gutting the insurance mandate by allocating it to millionaires, billionaires, and corporations via lower tax rates.
To finesse the tricky politics and brutal math of tax reform, Senate Republicans say that they want to repeal the Affordable Care Act’s individual mandate. For Republicans, repeal would be a trifecta: a blow to Obamacare, a money-saver for the federal government and a way to finance a permanent cut to the corporate tax rate
Demolishing the insurance mandate means the insurance pool will likely get sicker, and thus more costly for everyone else.
But opting out creates a problem: If lots of healthy people refuse to get coverage, those who keep their insurance will overall be sicker. Because a group of relatively sick people will have higher medical costs than a group of relatively healthy people, insurers will have to charge more for coverage. That drives up the price of insurance for everyone.
Here is the gist of the Republican tax plan.
So there won’t be any grand bargain. The trade-off here is both simple and brutal: Republicans want to pay for a permanent corporate tax by taking insurance from millions of people. Is that who we are as a nation?