2018 Tax Reform is here, and how it will affect Healthcare
As we all know, the Tax Reform passed at the end of last year with a 51-49 vote. So what does does that mean for the Healthcare industry?
For starters, the bill allows a healthy individual to elect to get out of insurance without penalty. This repeal will lead to the United States having an increase of 13 million uninsured citizens.
The tax bill had a provision that would repeal an itemized deduction of a healthcare expense. Removing the deduction however, would increase the medical cost drastically. Business insider noted: “Susan Collins, a Republican Senator of Maine, suggested an amendment that would save that deduction – and even lowered the threshold of how much of a person’s income is spent on healthcare expenses to qualify for the deduction from 10% to 7.5%. Collins had voted against all versions of the ACA repeal bill over the summer, but ultimately voted in favor of the tax bill.”
So the states that will be affected the most are the ones with the high rate of uninsured. Those states are Alaska, Iowa, Missouri, Nebraska, Nevada, and Wyoming. These states would be left with no coverage options or options too expensive for most consumers in the individual market.
Possibly Eliminate Tax Credit That Encourages Pharmaceutical Companies To Develop Drugs For Rare Diseases
This might be a little known fact that not many people are aware of. Scientific American states that, the tax money that was coming from the money that was being cut, was going towards developing new drugs for rare diseases. The program that is being cut is called Orphan Drug Credit, and was created in 1983. This program has helped develop over 500 drugs since the time it began. They assist diseases that affect less than 200,000 people to help give them hope.
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